Economical Analysis of Cooperative Behavior of Transportation and Warehousing Company Based on Resource Integration

Abstract

The phenomenon of free warehousing service offered by integrated transportation and warehousing company is concerned. The mechanics is studied based on the theory of the resource integration and the contract design. The result shows that the transportation company willing to pay the warehouse a certain lump sum on the contract designed. It is shown that the effective contract design is a significant managerial tool to improve cooperative behavior of supply chain.