Linear Incentive Mechanism For The Socialization Of Military Logistics With Multi-objectives

With the improvement of military modernization, the importance of military logistics has become increasingly prominent. Full usage of market mechanisms, the help of the social forces and the integration of extraordinary resources in market are the only ways for military logistical support. In the meantime, with the rapid development of the market, government and enterprises promote social reform of logistics, which provides a smooth experience for us to carry out the military logistical support socialization. Therefore, our military should follow the trend to actively practice the logistics system reform and vigorously promote the socialization process so as to achieve the modernization of logistics and unswervingly follow the road of civil-military integration.Through extensive literature review and combined with military logistics working experience, this paper begins with the research background, meaning and purpose, which analyze and describe the current status of development and the encountered difficulties since the socialization. Secondly, In view of multi-task and multi-objective characteristics of socialization of military logistics, it constructs a model on military logistics socialization, adding the weighting coefficient in the military’s objective function and aiming at both improving the level of military logistics support and reducing military cost. Third, by solving and analyzing the model, we identify the key factors that affect military socialization incentive coefficients, and the numerical analysis are carried out to verify the main conclusions. Finally, the corresponding countermeasures and suggestions are provided.It draws the conclusions as follows:(1) The optimal incentive coefficient is a decreasing function of the risk aversion degrees of the local firm and the output variances under the conditions of 2 4 21 2() 1ir sb b -m > or m =0;(2) The optimal incentive coefficient is an increasing function of both the weighting coefficient and the complementary level of the efforts;(3) The optimal incentive coefficient is a decreasing function of the marginal cost of the efforts. Based on the establishment of multi-task principal-agent model, It draws the appropriate management revelation. It helps to accelerate the reform of socialization of military logistics with the above conclusions.