Decision-Making of Transnational Supply Chain Considering Tariff and Third-Party Logistics Service

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.

A study on the promotion effect of government guidance on the construction of a national unified market logistics channel

“…For example, Zhang et al(2019)introduced government subsidy policies and carbon emission trading policies to guide cold chain logistics enterprises to carry out energy saving and emission reduction transformation of cold storage, and applied this method to the decision-making of regional cold chain logistics system in Wuhan, Hubei Province [27]. Hu et al (2022) established a logistics cooperation model of cross-border two-way supply chain under the benefit sharing and cost sharing policy, and put forward strategies for effective cooperation and coordination of supply chain and reducing the impact of tariffs on the global trading system [28]. Babagolzadeh et al (2022) analyzed the structure and decision of regional distribution network under different government subsidy schemes, and the results showed that the introduction of subsidies can effectively reduce the total logistics cost [29].…”

Cross-border dual-channel supply chain decision-making under random demand and tariff conditions

“…In order to investigate the effects of cross-border variables like tariff deficiencies and transportation costs on cross-border supply networks, Villegas and Ouenniche [ 32 ] built a model of production and distribution planning for cross-border supply chains. International manufacturers, domestic suppliers, and third-party integrated international logistics service providers make up the supply chain decision-making model that Hu et al [ 33 ] built. The study demonstrates how the imposition of tariffs has seriously disrupted the functioning of global trade and supply chains.…”