Study On The Distribution Capability Based On Cost And The Level Of Service

Distribution as a part of the supply chain, connecting the upper suppliers and the lower demanders, plays the role of adding the value of time and space and has a great impact on the performance of the whole supply chain. In the actual operation of the distribution, we can find that there are some certain capacity restraints during the process of distribution services, which constrain the improvement of distribution service level and affect the enterprise operating performance. As the same time, as the competition of the market speeding up and the advantages of the distribution growing, customers demand better and better distribution services. To satisfy the higher and higher demands of the customers, enterprises have to increase the operating costs to raising the standard of service. So, how to find a balance between costs of distribution and services becomes an urgent problem needed to be solved. Therefore, based on the balance between service and cost, the article exhaustively studied the distribution capacity, which will not only help us to understand deeply distribution capacity in theory, but also conduct distribution operation and offer customers a higher level of personalized delivery service. Based on some existing research fruits, the article has mainly done the following work.①On the basis of the concepts of capacity, the concept of distribution capacity was defined. And according to the relevant studies of distribution capacity and logistics capacity, the framework elements of the distribution capacity was put forward, and the factors of affecting distribution capacity were discussed in detail.②Based on the above research, the article set up some quantitative models to calculate the distribution capacity elements, mainly from the point of view of all aspects of distribution.③Distribution services and costs are two major factors considered, so the article analyzed the distribution cost and the general requirements of distribution services, and qualitatively studied the relationship between them. Based on the above, the article put forward a quantitative research methodology on how to weigh the cost and service, and established two models and applied to examples.