Coordinated Distribution or Client Introduce? Analysis of Energy Conservation and Emission Reduction in Canadian Logistics Enterprises
Abstract
:1. Introduction
2. Methodology
2.1. Hypothesis, Problem Description and Variable Definition
2.1.1. Hypothesis
- (1)
- For the sake of discussion, this study assumes that there are two logistics enterprises in a certain region of Canada, namely logistics enterprise 1 and logistics enterprise 2. Logistics Enterprise 1 is a large-scale enterprise in the logistics industry of this region. It has a large scale and has received more logistics orders. However, in the off-season, logistics facilities and personnel are easily left idle. Logistics Company 2 is the second small company. Compared with logistics enterprise 1, logistics enterprise 2 has a smaller scale. Limited by its scale, it will lose a lot of customers, resulting in a certain opportunity cost. For example, Yusen Logistics, based in Canada, provides services such as international freight forwarding (by air or sea), contract logistics (e.g., warehousing) and transportation (e.g., trucking). Its main business is not in Canada. The company is constantly cooperating with other logistics enterprises. These services can act as standalone services or as part of our broader offering as a supply chain provider [26].
- (2)
- Only the distribution link is selected in this study. Logistics activities are divided into transportation, loading, unloading, handling, storage, circulation processing, distribution and other links. The way these processes create value is different. Distribution involves preparation, storage, sorting and distribution, assembly, distribution, transportation, delivery and many other processes. Therefore, the logistics distribution link is the most complex and tedious of the whole logistics process. It is mainly in accordance with the user’s order requirements, in the logistics base for tallying work, and in the distribution of good goods to the consignee of a logistics mode. The efficiency of distribution has a great impact on green logistics. Therefore, this study chooses the distribution link as the representative for analysis. When analyzing other links in logistics, the conclusions of this study can be used as a reference.
- (3)
- The distribution decisions of the two companies are in a continuous changing process. Logistics distribution is mainly according to the user order requirements in the logistics base for tallying work and the distribution of good goods to the consignee of a logistics mode. In recent years, Canadian e-commerce has developed rapidly. Logistics distribution activities are also increasing year by year. A company makes distribution decisions in order to maximize profits. However, that decision has an impact on another company’s decision. Because the two companies have a certain competitive relationship, the decisions of other companies have a further impact on our company. Management itself is a decision-making process. Decision-making is always present in the operation process of logistics enterprises. Over time, the cycle repeats, and the distribution decisions of the two companies are constantly changing. And their distribution decisions are always influenced by other logistics companies.
2.1.2. Problem Description
- (1)
- Independent distribution, cooperative operation and service purchase. Separate distribution mode. In the market environment of perfect competition in the logistics industry, all enterprises take the logistics distribution service separately for the sake of maximizing their own interests.
- (2)
- Joint distribution model. Canada is large and sparsely populated. If each company in the logistics industry operates separately, it will cause a waste of resources. Therefore, it is necessary for every company in the logistics industry to establish cooperation. For example, when an order from one logistics company cannot be fulfilled, the order is sent to another logistics company.
- (3)
- The model of introducing customers. Only when logistics enterprises trust each other will they send orders to other logistics enterprises free of charge. However, the relationships between logistics companies themselves are competitive, and trust is low in most cases. Therefore, in order for the cooperation to proceed smoothly, it is necessary to pay for the order service.
2.1.3. Variable Definition
2.2. Differential Game of Different Operating Models
2.2.1. Separate Distribution
2.2.2. Coordinated Distribution
2.2.3. Client Introduce
3. Results
3.1. HJB Formula
3.2. Result of Equilibrium
3.2.1. Separate Distribution
3.2.2. Coordinated Distribution
3.2.3. Client Introduce
3.3. Comparison of Equilibrium Results
4. Discussion
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Abbreviations
Variables and Parameters | Specific Meaning |
Y = {F,C,B} | three operating modes of logistics enterprises (separate distribution, coordinated distribution, client introduce) |
independent variable | |
QYi(t) | distribution quantity of logistics enterprise i under operation mode Y |
AYi(t) | the capital invested by logistics enterprise i under operation mode Y |
xYi(t) | distribution capability of logistics enterprise i under operation mode Y |
parameter | |
ρ | the discount rate that occurs over time, which is the discount factor, 0 ≤ ρ ≤ 1 |
δ | the decay rate of the distribution capacity of logistics enterprise i, δ > 0 |
b | revenue per unit of delivery, b > 0 |
l1 | the positive impact of unit distribution capacity on logistics enterprise 1, l1 > 0 |
l2 | the positive impact of unit distribution capacity on logistics enterprise 2, l2 > 0 |
c1 | distribution unit goods logistics enterprise 1 cost, c1 > 0 |
cr | distribution unit commodity logistics enterprise 2 pays more cost than logistics enterprise 1, cr > 0 |
p1 | loss caused by vacant logistics facilities of logistics enterprise 1, p1 > 0 |
po | the opportunity cost of logistics enterprise 2 due to its small scale, po > 0 |
λ | the positive influence of logistics capital input on distribution capacity, λ > 0 |
function | |
JYi(t) | the benefit function of logistics enterprise i under operation mode Y |
VYi(t) | social benefits of logistics enterprise i under operation mode Y |
Appendix A
Appendix B
Appendix C
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Bai, Y.; Gao, Y.; Li, D.; Liu, D. Coordinated Distribution or Client Introduce? Analysis of Energy Conservation and Emission Reduction in Canadian Logistics Enterprises. Sustainability 2022, 14, 16979. https://doi.org/10.3390/su142416979
Bai Y, Gao Y, Li D, Liu D. Coordinated Distribution or Client Introduce? Analysis of Energy Conservation and Emission Reduction in Canadian Logistics Enterprises. Sustainability. 2022; 14(24):16979. https://doi.org/10.3390/su142416979
Chicago/Turabian StyleBai, Yuntao, Yuan Gao, Delong Li, and Dehai Liu. 2022. "Coordinated Distribution or Client Introduce? Analysis of Energy Conservation and Emission Reduction in Canadian Logistics Enterprises" Sustainability 14, no. 24: 16979. https://doi.org/10.3390/su142416979
APA StyleBai, Y., Gao, Y., Li, D., & Liu, D. (2022). Coordinated Distribution or Client Introduce? Analysis of Energy Conservation and Emission Reduction in Canadian Logistics Enterprises. Sustainability, 14(24), 16979. https://doi.org/10.3390/su142416979