Exploring the steel bar logistics value chain in China

The aim of the paper is to present a conceptual exploration on how a newly emerged distribution service business in China is developed, interpreted and modelled. The study draws on a recent case from a fast expanding 3PL company in China and frames the case with a conceptual flow-model and interprets it mathematically by using a linear bi-level programming algorism. It finds that recent advances in the steel bar logistics practices in China have been phenomenal. The emerging business model is set to define the standard for the industrial sector. The logistics process and structure changes were primarily driven by not only the higher returns on investment to the participating members individually, but also by that of the total supply chain. The emerged steel bar logistics service model studied here represents a new business evolution in the 3PL service industry ever seen in China. The application of bi-level programming algorithm in assessing returns on investment and the total supply chain value has been original