A Study on the Cost Optimization of Third Party Logistics Based on Game Theory

Abstract

Modern logistics is the “third profit source” after the enterprise compresses the cost and increases the production efficiency. The third party logistics is the main form of the modern logistics. The cost optimization of the third party logistics mainly concentrates on the storage cost, transportation cost and so on. Traditionally, this paper will focus on the following: how to reduce the risk of the third party logistics enterprises in the game process with the upstream and downstream cooperative enterprises. Based on this, this paper first analyzes the feasibility of the combination of game theory and the third party logistics enterprise risk cost control. Secondly, it puts forward the cost target of the third party logistics enterprise and the upstream and downstream enterprise game. Then it constructs the game between the third pary logistics and the upstream and downstream cooperative enterprise model, and to solve; Finally, CJ Rongqing logistics company as an example, verify the game model derived from the conclusion.