Abstract
Countries’ economic policies, such as tariff barriers, have a profound impact on the global economy and international trade. The imposition of tariffs seriously disturbs the global trade and supply chain operations. This paper studies a supply chain composed of an overseas manufacturer, a domestic supplier and a third-party integrated international logistics service provider. A three-level decentralized leader-follower decision-making model and its variant--leader-follower alliance decision-making models are established, and the influences of revenue sharing and cost sharing on the three-level decentralized decision-making are analyzed. The results show that it is difficult for the supply chain to achieve coordination when the transportation and insurance costs are considered in the tariff cost. The increase of tariff rates will reduce the profits of all parties and the overall profit of the supply chain, and weaken the dominant position of the supplier in the supply chain. Revenue sharing can improve the supply chain performance; the performance of the whole supply chain cannot be improved or may even deteriorate by sharing the transportation cost alone. The study can provide practitioners with implications for how to carry effective cooperation and coordination in the supply chain and how to effectively reduce the influence of tariffs in the global trade system.
Highlights
At present, various uncertainties such as the COVID-19 epidemic are seriously disrupting world economic growth and exacerbating the instability of the global economy [1]
We apply game theory to formulate Stackelberg game models based on the different roles of the members in the supply chain, analyze the impacts of tariff on the supplier’s pricing, the third-party integrated international logistics service provider (TPIILSP)’s transportation pricing, and the manufacturer’s ordering; as well as the profits of supply chain members, discuss the coordination mechanism based on revenue sharing and cost sharing for three-level decentralized game decision of the transnational supply chain; and provide implications for transnational supply chain operations
The results show that the alliance game can reduce the level of the game and improve the performance of the transnational supply chain
Summary
Various uncertainties such as the COVID-19 epidemic are seriously disrupting world economic growth and exacerbating the instability of the global economy [1]. The purpose of this paper is to investigate the decision-making and coordination of a transnational supply chain, analyze the impact of tariff and international logistics on supply chain decision-making, and provide implications for practitioners in global supply chain management operations. Some literatures have studied the issue of the global supply chain modelling and the impact of tariffs on global trade, little attention has been paid to the decision-making and coordination mechanism of transnational supply chains with multiple participators, especially when it comes to third-party logistics service providers. This paper contributes to a new perspective of three parties’ participation game decision in the field of transnational supply chain management.
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