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Zbl 1183.90059
Liu, Weihua; Ji, Jianhua; Zhou, Le
An order allocation model in two-echelon logistics service supply chain. (Chinese. English summary)
[J] J. Shanghai Jiaotong Univ. (Chin. Ed.) 42, No. 9, 1524-1528,1533 (2008). ISSN 1006-2467

Summary: How to execute the order allocation when a logistics service integrator (LSI) faces to many functional logistics service providers (FLSPs) in an indeterminate customer demand environment is discussed. Based on the characteristics of order allocation in a logistics service supply chain, an order allocation model with multiform logistics capacity is given. This model considers four goals including to minimize the cost of the LSI, to maximize the satisfaction of FLSPs, to minimize the penalty intensity from the FLSPs and to match different logistics capacity potentials. A solution method for the model is also proposed. A practical example is given unsing the software LINGO 8.0 and the effects of demand uncertainty and the relationship cost coefficient on order allocation are discussed. The results show that with the augment of uncertainty, the general cost of the LSI is increasing, the total satisfaction of all FLSPs is decreasing while the general penalty intensity of all FLSPs is increasing. Meanwhile, the relationship coefficient is closely correlated to the satisfaction and general penalty intensity of the FLSPs. The greater the relationship cost coefficients, the greater the satisfaction and the minor the penalty intensity of the FLSPs.

MSC 2000:: *90B06 Transportation, logistics
90B80 Discrete location and assignment

Keywords: logistics service supply chain; order allocation; uncertainty; relationship cost coefficient

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