[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i17p9979-d629898.html
   My bibliography  Save this article

Hub-and-Spoke Logistics Network Considering Pricing and Co-Opetition

Author

Listed:
  • Jian Zhou

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Kexin Xu

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Yuxiu Zhao

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Haoran Zheng

    (School of Economics, Shanghai University, Shanghai 200444, China)

  • Zhengnan Dong

    (School of Science, Shanghai University, Shanghai 200444, China)

Abstract
With the rapid development of the logistics market, the construction of an efficient “channel + hub + network” logistics system, that is, a hub-and-spoke logistics network, is of great importance to enterprises. In particular, how to reduce costs and increase efficiency in both the construction of network facilities and actual operations, and to formulate reasonable prices for the logistics service needs in the entire market are crucial strategies and decisions for enterprises. Under such a background, this article starts from the perspective of duopoly logistics enterprises that jointly build networks and allow the transfer of surplus capacity and carbon credits, and studies the hub-and-spoke logistics network design that also considers the relationship between service pricing and co-opetition. Considering the corporate profit and difficulty of implementation as a whole, the co-opetition is a better choice than the complete competition and perfect cooperation. In addition, the remaining capacity of the company, the transfer of carbon credits, the joint construction and sharing of hubs, and strategic cooperation in the area of corporate common pricing under the price framework agreement are conducive to the realization of an increase in corporate operating profits, a better market share and more favorable pricing.

Suggested Citation

  • Jian Zhou & Kexin Xu & Yuxiu Zhao & Haoran Zheng & Zhengnan Dong, 2021. "Hub-and-Spoke Logistics Network Considering Pricing and Co-Opetition," Sustainability, MDPI, vol. 13(17), pages 1-21, September.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9979-:d:629898
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/17/9979/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/17/9979/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Juanjo Peiró & Ángel Corberán & Rafael Martí & Francisco Saldanha-da-Gama, 2019. "Heuristic Solutions for a Class of Stochastic Uncapacitated p-Hub Median Problems," Transportation Science, INFORMS, vol. 53(4), pages 1126-1149, July.
    2. Marianov, Vladimir & Serra, Daniel & ReVelle, Charles, 1999. "Location of hubs in a competitive environment," European Journal of Operational Research, Elsevier, vol. 114(2), pages 363-371, April.
    3. Song, Dong-Ping & Lyons, Andrew & Li, Dong & Sharifi, Hossein, 2016. "Modeling port competition from a transport chain perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 75-96.
    4. Liu, Huihui & Lei, Ming & Deng, Honghui & Keong Leong, G. & Huang, Tao, 2016. "A dual channel, quality-based price competition model for the WEEE recycling market with government subsidy," Omega, Elsevier, vol. 59(PB), pages 290-302.
    5. Niu, Baozhuang & Xie, Fengfeng & Chen, Lei & Xu, Xin, 2020. "Join logistics sharing alliance or not? Incentive analysis of competing E-commerce firms with promised-delivery-time," International Journal of Production Economics, Elsevier, vol. 224(C).
    6. Alibeyg, Armaghan & Contreras, Ivan & Fernández, Elena, 2018. "Exact solution of hub network design problems with profits," European Journal of Operational Research, Elsevier, vol. 266(1), pages 57-71.
    7. Nader Azizi & Navneet Vidyarthi & Satyaveer S. Chauhan, 2018. "Modelling and analysis of hub-and-spoke networks under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 264(1), pages 1-40, May.
    8. Guanshuang Jiang & Qi Wang & Ke Wang & Qianyu Zhang & Jian Zhou, 2020. "A Novel Closed-Loop Supply Chain Network Design Considering Enterprise Profit and Service Level," Sustainability, MDPI, vol. 12(2), pages 1-21, January.
    9. Mahmutogullari, Ali Irfan & Kara, Bahar Y., 2016. "Hub location under competition," European Journal of Operational Research, Elsevier, vol. 250(1), pages 214-225.
    10. Zhou, Jian & Li, Hui & Gu, Yujie & Zhao, Mingxuan & Xie, Xuehui & Zheng, Haoran & Fang, Xinghua, 2021. "A novel two-phase approach for the bi-objective simultaneous delivery and pickup problem with fuzzy pickup demands," International Journal of Production Economics, Elsevier, vol. 234(C).
    11. Hu, Kejia & Chen, Yuche, 2019. "Equilibrium fuel supply and carbon credit pricing under market competition and environmental regulations: A California case study," Applied Energy, Elsevier, vol. 236(C), pages 815-824.
    12. Lüer-Villagra, Armin & Marianov, Vladimir, 2013. "A competitive hub location and pricing problem," European Journal of Operational Research, Elsevier, vol. 231(3), pages 734-744.
    13. Zhang, Qi & Wang, Wenyuan & Peng, Yun & Zhang, Junyi & Guo, Zijian, 2018. "A game-theoretical model of port competition on intermodal network and pricing strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 19-39.
    14. Nasr, Eman S. & Kilgour, Marc D. & Noori, Hamid, 2015. "Strategizing niceness in co-opetition: The case of knowledge exchange in supply chain innovation projects," European Journal of Operational Research, Elsevier, vol. 244(3), pages 845-854.
    15. Lin, Cheng-Chang & Lee, Shwu-Chiou, 2018. "Hub network design problem with profit optimization for time-definite LTL freight transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 104-120.
    16. O'Kelly, M. E. & Bryan, D. L., 1998. "Hub location with flow economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 32(8), pages 605-616, November.
    17. Madani, Seyed Reza & Shahandeh Nookabadi, Ali & Hejazi, Seyed Reza, 2018. "A bi-objective, reliable single allocation p-hub maximal covering location problem: Mathematical formulation and solution approach," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 118-136.
    18. Wagner, Bernd, 2008. "A note on "Location of hubs in a competitive environment"," European Journal of Operational Research, Elsevier, vol. 184(1), pages 57-62, January.
    19. Benati, Stefano & Hansen, Pierre, 2002. "The maximum capture problem with random utilities: Problem formulation and algorithms," European Journal of Operational Research, Elsevier, vol. 143(3), pages 518-530, December.
    20. Ebery, Jamie & Krishnamoorthy, Mohan & Ernst, Andreas & Boland, Natashia, 2000. "The capacitated multiple allocation hub location problem: Formulations and algorithms," European Journal of Operational Research, Elsevier, vol. 120(3), pages 614-631, February.
    21. Najy, Waleed & Diabat, Ali, 2020. "Benders decomposition for multiple-allocation hub-and-spoke network design with economies of scale and node congestion," Transportation Research Part B: Methodological, Elsevier, vol. 133(C), pages 62-84.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    2. Erdoğan, Güneş & Battarra, Maria & Rodríguez-Chía, Antonio M., 2022. "The hub location and pricing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1035-1047.
    3. Dhyani, Sneha & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2019. "Alternate Second Order Conic Programming Reformulations for Hub Location with Capacity Selection under Demand," IIMA Working Papers WP 2018-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Domínguez-Bravo, Carmen-Ana & Fernández, Elena & Lüer-Villagra, Armin, 2024. "Hub location with congestion and time-sensitive demand," European Journal of Operational Research, Elsevier, vol. 316(3), pages 828-844.
    5. Jiang, Xiaodan & Fan, Houming & Luo, Meifeng & Xu, Zhenlin, 2020. "Strategic port competition in multimodal network development considering shippers’ choice," Transport Policy, Elsevier, vol. 90(C), pages 68-89.
    6. Sneha Dhyani Bhatt & Sachin Jayaswal & Ankur Sinha & Navneet Vidyarthi, 2021. "Alternate second order conic program reformulations for hub location under stochastic demand and congestion," Annals of Operations Research, Springer, vol. 304(1), pages 481-527, September.
    7. Bhatt, Sneha Dhyani & Sinha, Ankur & Jayaswal, Sachin, 2024. "The capacitated r-hub interdiction problem with congestion: Models and solution approaches," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    8. Ghaffarinasab, Nader & Çavuş, Özlem & Kara, Bahar Y., 2023. "A mean-CVaR approach to the risk-averse single allocation hub location problem with flow-dependent economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 167(C), pages 32-53.
    9. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2021. "Competitive hub location problem: Model and solution approaches," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 237-261.
    10. Milad Keshvari Fard & Laurent Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," Working Papers hal-01821280, HAL.
    11. Zhang, Qi & Wang, Wenyuan & Peng, Yun & Zhang, Junyi & Guo, Zijian, 2018. "A game-theoretical model of port competition on intermodal network and pricing strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 19-39.
    12. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2019. "Alternate Solution Approaches for Competitive Hub Location Problems," IIMA Working Papers WP 2019-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    13. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2019. "Competitive Hub Location Problems: Model and Solution Approaches," IIMA Working Papers WP 2019-12-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    14. Milad , Keshvari Fard & Laurent, Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," ESSEC Working Papers WP1805, ESSEC Research Center, ESSEC Business School.
    15. Tiwari, Richa & Jayaswal, Sachin & Sinha, Ankur, 2021. "Alternate solution approaches for competitive hub location problems," European Journal of Operational Research, Elsevier, vol. 290(1), pages 68-80.
    16. Alibeyg, Armaghan & Contreras, Ivan & Fernández, Elena, 2018. "Exact solution of hub network design problems with profits," European Journal of Operational Research, Elsevier, vol. 266(1), pages 57-71.
    17. Mahmutogullari, Ali Irfan & Kara, Bahar Y., 2016. "Hub location under competition," European Journal of Operational Research, Elsevier, vol. 250(1), pages 214-225.
    18. Taherkhani, Gita & Alumur, Sibel A., 2019. "Profit maximizing hub location problems," Omega, Elsevier, vol. 86(C), pages 1-15.
    19. Teye, Collins & Bell, Michael G H & Bliemer, Michiel C J, 2017. "Urban intermodal terminals: The entropy maximising facility location problem," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 64-81.
    20. Jayaswal, Sachin & Vidyarthi, Navneet, 2023. "Multiple allocation hub location with service level constraints for two shipment classes," European Journal of Operational Research, Elsevier, vol. 309(2), pages 634-655.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9979-:d:629898. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.