A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service

Table 2

Profits comparing in different LSSC decision mode.

Decision mode	The optimal customization degree	The profit of LSI
Customization degree dominated by LSI (Case A)	𝑡^caseA=𝐶1𝜔𝑄0−𝑏𝐶2𝛽−𝐶21−𝛽𝑎−𝑏𝐶1(1+𝜔)2𝐶2(1−𝛽)(𝑄0−𝑏𝐶2𝛽)	𝜋^caseA1=𝐶1−𝑄0𝜔+𝑏𝐶2(1+𝜔−𝛽)+𝑎𝐶2(−1+𝛽)^24𝐶2(−1+𝛽)(−𝑄0+𝑏𝐶2𝛽)
Customization degree dominated by customer (Case B)	𝑡^caseB=𝑃0−𝑃1+𝐶1(1+𝜔)𝑄0−𝑏𝐶2𝛽+𝐶2𝛽𝑎−𝑏𝐶1(1+𝜔)2𝐶2𝛽(−𝑄0+𝑏𝐶2𝛽)	𝜋^caseB1=−𝑃1𝑄0+𝐶1𝑄0(1+𝜔)−𝑎𝐶2𝛽+𝑏𝐶2𝑃1𝛽+𝑃0(𝑄0−𝑏𝐶2∗𝑄𝛽)(−1+𝛽)0−𝑏𝐶2𝛽𝑃1−𝑃0−𝑎𝐶2𝛽+𝐶12𝑏𝐶2𝛽(−1−𝜔+𝛽)+𝑄0(1+𝜔−𝛽+𝜔𝛽)4𝐶2𝛽^2(−𝑄0+𝑏𝐶2𝛽)
Customization degree decided by concentrated supply chain (Case C)	𝑡^caseC=𝐶2𝑎−𝑏𝐶1(1+𝜔)+𝑃0−𝑃1+𝐶1𝑄0−𝑏𝐶2𝛽−2𝐶2(𝑄0−𝑏𝐶2𝛽)	𝜋^caseC1=𝑎𝐶2−𝑏𝐶1𝐶2(1+𝜔)+𝑄0+𝑏𝐶2𝛽𝑃1−𝑃0−𝐶1∗𝑎𝐶2(−1+𝛽)−𝑄02𝐶1𝜔+−1+𝛽𝑃1−𝐶1−𝑃0+𝑏𝐶2(𝑃1−𝑃0)(−1+𝛽)𝛽+𝐶1(1+𝜔−𝛽)(1+𝛽)4𝐶2−𝑄0+𝑏𝐶2𝛽
Decision mode	The profit of customer	The profit of whole LSSC
Customization degree dominated by LSI (Case A)	𝜋^caseA2=𝐶1𝑄0𝜔−𝑏𝐶2(1+𝜔−𝛽)+𝑎𝐶2∗2𝑄(1−𝛽)(−1+𝛽)0−𝑏𝐶2𝛽𝑃1−𝑃0+𝑎𝐶2𝛽−𝐶1(𝑏𝛽𝐶2(1+𝜔−𝛽)−2(1+𝜔)𝑄0+𝛽(2+𝜔)𝑄04𝐶2(−1+𝛽)^2(−𝑄0+𝑏𝐶2𝛽)	𝜋^caseA𝑇=𝜋^caseA1+𝜋^caseA2
Customization degree dominated by customer (Case B)	𝜋^caseB2=−−𝑃1𝑄0+𝐶1𝑄0(1+𝜔)−𝑎𝐶2𝛽+𝑏𝐶2𝑃1𝛽+𝑃0(𝑄0−𝑏𝐶2𝛽)^24𝐶2𝛽(−𝑄0+𝑏𝐶2𝛽)	𝜋^caseB𝑇=𝜋^caseB1+𝜋^caseB2
Customization degree decided by concentrated supply chain (Case C)	𝜋^caseC2=−𝑎𝐶2−𝑏𝐶1𝐶2(1+𝜔)+𝑄0+𝑏𝐶2𝛽𝑃1−𝑃0−𝐶1∗2𝑃1𝑄0−𝑏𝐶2𝛽−𝑃1𝛽𝑄0−𝑏𝐶2𝛽+𝑃0(−2+𝛽)(𝑄0−𝑏𝐶2𝛽)+𝑎𝐶2𝛽+𝐶1𝑏𝐶2(1+𝜔−𝛽)𝛽+𝑄0(−2−2𝜔+𝛽)4𝐶2−𝑄0+𝑏𝐶2𝛽	𝜋^case3𝑇=−𝑎𝐶2+𝐶1+𝑃0−𝑃1𝑄0+𝑏𝐶2𝐶1(1+𝜔)+𝛽𝑃1−𝐶1−𝑃0^24𝐶2(𝑄0−𝑏𝐶2𝛽)