Research On Logistic Service Supply Chain Order Allocation With Outsourcing And Fairness Preference

With the diversity and dynamics of logistic service demand, enterprises ask for more request for the logistic service. The way that enterprises owned or simple cooperation has been unable to meet the needs. At the same time, when meeting the request of both the high quality and low cost, enterprises turn their way from buying outside to contracting all the logistic service. So under the system of E-commerce, the type of logistic service supply chain mainly leading by logistic service integrator emerged. The logistic service integrators can provide integrated logistic service, in which the competitiveness of the logistic service integrators is improved.The classical theory indicated that human is totally rational, and individual seek for maximum the owned interests, the do not care for others behavior. While through the experiment proved that in the reality the individual is limited self-interest, they have the behavior of fairness preference. When others have higher interest, they would be jealousy, when others have lower interest, they would be guilty. Some scholars present the fairness preference model based on the behavior of fairness.The paper presents following aspects content based on the LSSC.(1) Built the LSSC order allocation model. The model is based on the four objective functions of minimum cost of LSI, maximum the interest of FLSPs, maximum the satisfaction degree of the FLSPs and minimum the matching degree of FLSPs. The market demand in the model is uncertain. In the model the price of the FLSPs is linearly correlated with the quality. Then through the case obtained the impact of uncertain market demand and quality on the order allocation result.(2) Built the LSSC order allocation model with outsourcing. The LSI will punish the FLSPs when the FLSPs can’t finish the order, and the FLSPs will outsourcing the unfinished order in case not accepting the punishment. Then through the case obtained the impact of outsourcing price on the order allocation result.(3) Built the LSSC order allocation model with outsourcing and fairness preference. The present LSSC order allocation model assumed that the FLSPs are totally rational, each FLSP has no impact on others. But the fact is that the FLSPs are limited self-interest. The interest of one FLSP will impact on others. So aid the fairness preference into the model. Then through the case obtained the impact of different fairness preference coefficient on the order allocation result.