›› 2020, Vol. 32 ›› Issue (3): 289-299.

• Logistics and Supply Chain Management • Previous Articles     Next Articles

Study on Collaboration Mechanism of Functional Elements in Logistics System: Example from Cut Flowers

Cheng Shiguo1, Zhu Dongqing2,3   

  1. 1. School of Economics, Yunnan University, Kunming 650504;
    2. School of Vocational and Technical Education, Yunnan Minzu University, Kunming 650504;
    3. School of Economics, Yunnan University of Finance and Economics, Kunming 650221
  • Received:2017-07-07 Online:2020-03-28 Published:2020-04-08

Abstract:

This paper builds a theoretical model to clarify the relationship among costs input to functional elements of logistics system, studies the mechanism of collaboration relationship, finds out the condition of and boundary between trade off and collaboration effects, and verifies the theory by conducting a numerical example. The results show that it is of collaboration relationship among costs input to functional elements in logistics system when, firstly, the optimal solution of the model is the internal point solution, secondly, the quality substitution elasticity of the functional elements of the logistics system is small enough, and thirdly, the price of the product is sufficiently elastic to quality. Otherwise, it is of trade-off relationship. The case study on cut flower logistics system shows that there is a collaborative relationship among costs input to functional elements, which is consistent with the theoretical predictions. At the end, some suggestions are given for improving cut flower logistics system.

Key words: trade off, collaboration effect, price elasticity, elasticity of substitution, cut flower logistics system