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Mathematical Problems in Engineering
Volume 2013, Article ID 957260, 13 pages
http://dx.doi.org/10.1155/2013/957260
Research Article

Order Allocation Research of Logistics Service Supply Chain with Mass Customization Logistics Service

1School of Management, Tianjin University, Tianjin 300072, China
2Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China
3College of Engineering, Purdue University, Hovde Hall, 610 Purdue Mall, West Lafayette, IN 47906, USA

Received 23 July 2013; Revised 3 September 2013; Accepted 23 September 2013

Academic Editor: Kannan Govindan

Copyright © 2013 Weihua Liu et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper studies the order allocation between a logistics service integrator (LSI) and multiple functional logistics service providers (FLSPs) with MCLS. To maximize the satisfaction of FLSPs, minimize the total cost of LSI, and maximize the customized degree, this paper establishes a multiobjective order allocation model of LSSC that is constrained by meeting customer demand, customer order decoupling point, and order difference tolerance coefficient. Numerical analysis is performed with Lingo 12 software. This paper also discusses the influences of scale effect coefficient, order difference tolerance coefficient, and relationship cost coefficient on the comprehensive order allocation performance of the LSSC. Results show that LSI prefers FLSPs with better scale effect coefficients and does not need to set an extremely high order difference tolerance coefficient. Similarly, setting a high relationship cost coefficient does not necessarily correspond to better results. For FLSPs, the continuous improvement of large-scale operational capacity is required. When the comprehensive order allocation performance of the LSSC is high, the LSI should offer cost compensation to improve the satisfaction of the LSSC.