Study On The Coordination Of Logistics Service Supply Chain

Changes in customer demand, competition intensifies and a constantly changing market, enterprises are forced to reorganize their business processes, to be able to react quickly and cost effectively as to adapt to fast changing market demands. Creating low-cost ability has become an important source of enterprise gaining competitive advantages. Logistics have gained much attention in increasing efficiency and flexibility of organizations as logistic costs make up a significant part of total production costs. The entire logistic processes, from the acquisition of raw materials to the distribution of products to end-customer, make up a logistic service supply chain consisting of multiple actors. Developments in telecommunication and information technology have created many opportunities to increase the integration of these actors, and in consequence, to increase the performance of the total logistics service supply chain, providing a win-win situation.With the globalization of businesses, the consequent competitive pressures and the constantly changing environment, many organizations have progressively sought to outsource their logistics functions as successful strategic tools. This tendency provided a good opportunity for the logistics industry’s development also to bring severe challenges. Therefore, logistics service supply chain (LSSC) management researches become more important, and have attracted many scholars’ attention. Until recently, the role of Operations Research in modeling logistic chains was limited to the analysis of local performance of logistics sub-chains and processes, like vehicle scheduling and capacity allocation. In most cases, however, improving the performance of the total logistic service supply chain requires redesign of the logistic processes. Nowadays, with the rapidly growth of logistics service demand, logistics sub-contract become new trend, logistics enterprises need to integrate more resources to meet customers’ comprehensive and complicated logistics services needs. Therefore, logistics industry operation need more supply chain management theory and practice experiences to guide, operations research models and tools are also indispensable. This thesis tries to study revenue sharing contract and bidirectional options contracts how to coordinate the benefit conflicts between logistics service integrator and logistics service subcontractor.Firstly, under the assumption that there is a linear relative between the logistics service price and the market demand for the client enterprise’s product, respectively discussing the Stackelberg game model dominated by logistics service integrator or logistics service subcontractor. Then, introduce revenue sharing contract to coordinate logistics capability ordering problem between logistics service integrator and logistics service subcontractor. The results show that when the share proportion meets some area, revenue sharing contract can realize supply chain coordination.In addition, a corresponding example is presented to illustrate the conclusions.Secondly, on the base of the former study in, considering that the uncertainty of the market demand and the inaccuracy of demand forecast, the assumption that the market demand is stochastic is provided to better simulate and explain actual things. On the condition of providing return policy and revenue sharing, logistics service integrators would order more products, thus to reduce the losses from stock, and the subcontractor was inspired to reduce logistics service wholesale prices on revenue sharing contract, so as to achieve the optimal system profit and a win-win situation.Finally, the thesis studies the bidirectional option contract how to coordinate the optimal capability reservation and investment strategy between logistics service integrator and logistics service subcontractor. Bidirectional option makes logistics service integrator can adjust the initial order quantity and the number of options purchased. Studies imply that, when Bidirectional option price and exercise price of call option is high, the number of options purchased decrease to0, means that logistics service integrators purchase all logistic capability by wholesale price, option contract failure. Logistics service integrator increase both the initial order quantity and the number of options purchased with the increase of the exercise price of put option, the higher the exercise price of put option, the more logistics service integrator will get compensation. Furthermore, a corresponding example is presented to illustrate the conclusions.