#5108. Optimal financing strategies with 3PL customized service in a capital-constrained supply chain
July 2026 | publication date |
Proposal available till | 18-05-2025 |
4 total number of authors per manuscript | 0 $ |
The title of the journal is available only for the authors who have already paid for |
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Journal’s subject area: |
Management of Technology and Innovation;
Computer Networks and Communications;
Computer Science Applications;
Marketing; |
Places in the authors’ list:
1 place - free (for sale)
2 place - free (for sale)
3 place - free (for sale)
4 place - free (for sale)
More details about the manuscript: Science Citation Index Expanded or/and Social Sciences Citation Index
Abstract:
Consumers are becoming more customized-conscious and customized service becomes particularly important. We suppose that 3PL firm and the newsvendor-like retailer are risk-neutral profit maximizers, and the retailer is capital-constrained, needing short-term financing. Considering customized service, we mainly discuss two financing sources: bank financing and 3PL financing, where the customized service level is determined by the retailer or 3PL firm. The results show that the optimal financing strategy depends on the ratio of revenue-sharing. When the ratio is within a certain range, 3PL financing is the optimal strategy, achieving a win–win outcome. This paper also discusses a case where the retailer has risk aversion behavior. When the retailer has extremely risk-averse attitude, bank financing might be the optimal financing strategy. When the retailer is relatively optimistic, 3PL financing is a wise choice. These conclusions give us some meaningful management inspirations in light of customized service.
Keywords:
3PL financing; Customized service; Revenue-sharing contract; Risk aversion
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