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Title:

The Resilience Investment of Logistics Operators in Transnational Supply Chain

Accession Number:

01589121

Record Type:

Component

Abstract:

With the development of the transportation technology, manufacturers need the transnational logistics systems to export products for maximizing the profit. If the accident happened, the disruption of supply chain is likely to cause huge losses. The coping and response abilities of supply chain members impact the benefits of other members due to the interdependency. To minimize the losses, suppliers may consider whether their logistics partners have great resilience. This study applies the Stackelberg game with perfect information to construct a dynamic game and analyze the resilience investment strategies of companies. Players include the suppliers, domestic logistics operator, along with overseas logistics operator. This study constructs the resilience investment cost function of each player considering the logistics accident which happens in the foreign site. This study assumed that minimizing the total cost is the goal for each player in decision making and applied the backward induction to assess the equilibrium. A low-temperature supply chain of fruit from Taiwan to Japan and China was employed as the empirical case. The results show that the larger volume of products, the higher logistics expenses paid by the supplier, the more stringent accident compensation rules, and the higher risk of accident in the foreign site, make logistics service providers increase their resilience investment to prevent additional costs caused by supply chain failure.

Supplemental Notes:

This paper was sponsored by TRB committee ABR20 Standing Committee on the Logistics of Disaster Response and Business Continuity.

Monograph Accession #:

01584066

Report/Paper Numbers:

16-0481

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Hsieh, Cheng-Hsien
Feng, Cheng-Min

Pagination:

14p

Publication Date:

2016

Conference:

Transportation Research Board 95th Annual Meeting

Location: Washington DC, United States
Date: 2016-1-10 to 2016-1-14
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Identifier Terms:

Stackelberg game

Geographic Terms:

China; Japan; Taiwan

Subject Areas:

Freight Transportation; Planning and Forecasting; I72: Traffic and Transport Planning

Source Data:

Transportation Research Board Annual Meeting 2016 Paper #16-0481

Files:

TRIS, TRB, ATRI

Created Date:

Jan 12 2016 4:22PM