Quantity coordination of capacity cooperation in logistic service supply chain: A comparison study based on capacity matching constraint

Abstract

Based on a two-echelon logistics service supply chain (LSSC) consisting of a functional logistics service provider (FLSP) and a logistics service integrator (LSI), a multi-period logistics service capacity coordination model with Stackelberg decision-making is put forward. With the software Matlab 7.0, simulation method is used in order to find the varying tendency of LSSC’s performance. The results shows that whether LSI takes rapid decision-making strategy or endurance decision-making strategy, under the condition without capacity matching constraint, the trends of LSI’s satisfaction curve is uniform with the condition of capacity matching constraint, but the increasing or reduction rate of LSI’s satisfaction curve is faster. Whether under the condition with capacity matching constraint or not, the optimal cooperation strategy of LSSC is that LSI's capacity satisfaction in the first period should be higher than the standard satisfaction value set by LSI, at this time the LSI should take rapid decision-making mode. Key words: Logistics service supply chain, multi-period, capacity cooperation, quantity coordination, simulation.