Research On The Order Allocation In Logistics Service Supply Chain Based On The Rational Expectation Equilibrium

The capacity allocation decision is one of the most important decisions of supplychain strategies. When faced with a number of FLSPs, the way the LSI allocates theorder rationally is critical to the long-term stability of the LSSC. Current studies onthe order allocation of supply chain only consider the functions of time, cost etc., andmostly focus on the order allocation of the manufacturing industry, ignoring the orderallocation problem in service supply chain. In particular, in previous studies on theorder allocation, enterprises involved in the order allocation always accept orderspassively; however, in the actual order allocation process, they are strategic, they willdecide whether to participate in order allocation or not from the view of profit andsatisfaction, which has an important influence on the results of order allocation.Consequently, this paper will apply the behavioral operations management in LSSCand consider the strategic behaviors of FLSPs in order allocation. Based on rationalexpectations equilibrium, multi-objective programming models of order allocationoptimization model in LSSC are established. This paper can provide theory supportfor logistics enterprises making scientific decisions in the actual practice.First of all, this paper demonstrates the origin and significance of the topic withpractical and theoretical concerns. Furthermore, according to the literature review, it’semphasized that revisiting such issues as order allocation in supply chain, rationalexpectations equilibrium, competition between suppliers, which laying a solidfoundation for the following researches. Afterwards, this paper will investigate thestrategic behaviors of participants of order allocation in a logistics service supplychain from four aspects. Specifically,(1) this paper investigates pre-estimate behaviorof FLSPs, and explores the effects of demand uncertainty, expected discountcoefficient and business reputation of FLSPs on order allocation.(2) This paperfurther considers the order allocation model under competitive environment;numerical analysis is used to find the influence rule of competition intensity andadding new FLSPs on order allocation.(3) On the basis of considering pre-estimatebehavior, this paper also introduces competitive-bidding strategy into order allocationand establishes a multi-objective dynamic model. Four different cases (only considerspre-estimate behavior or competitive-bidding strategy, considers both behaviors andconsiders nothing) are compared to better observe the changes brought by pre-estimate behavior and competitive-bidding strategy of FLSPs to order allocationresults.(4) This paper also studies the model changes when the LSI has logisticsservice capacity, and observes the effect of the quantity and price of the LSI’s logisticsservice capacity. According to the effect rules, this paper proposes some suggestion tothe LSI for better managing LSSC. Finally, the main conclusion and future researchprospect are given.