Title: A two-echelon sustainable supply chain model for third-party logistics and warehouse financing using multi factor-dependent demand under revenue sharing and consumer segmentation

Authors: B. Malleeswaran; R. Uthayakumar

Addresses: Department of Mathematics, The Gandhigram Rural Institute – Deemed to be University, Gandhigram, Tamilnadu, India ' Department of Mathematics, The Gandhigram Rural Institute – Deemed to be University, Gandhigram, Tamilnadu, India

Abstract: In this model, we consider that customer demand depends on multi-factors such as quality, price, and logistics service level, and the manufacturer can decide the product's quality degree. Further, we develop this model by combining supply chain management with two financial approaches. Namely, third-party logistics and warehouse financing practices developed. This study aims to understand the relationship between supply chain management and third-party logistics under revenue sharing and consumer segmentation. This paper is developed under two models. Model I analyses the impact of an integrated two-echelon SC without market segmentation. Similarly, model II analyses the impact of an integrated two-echelon SC with market segmentation. The revenue-sharing contract is a type of agreement that specifies how earnings and losses are shared among partners in a supply chain. This paper investigates the manufacturer's and retailer's profits in a supply chain management system with third-party logistics and warehouse financing services. Moreover, we obtain the optimal solutions for the given decision variables by classical optimisation methods.

Keywords: third-party logistics; TPL; warehouse financing; revenue sharing; consumer segmentation; multi-factor sensitive demand.

DOI: 10.1504/IJLSM.2025.143891

International Journal of Logistics Systems and Management, 2025 Vol.50 No.1, pp.51 - 68

Received: 27 May 2022
Accepted: 13 Jun 2022
Published online: 13 Jan 2025 *

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