Research On Optimal Decisions And Profit Allocation Of Three Level Supply Chain With TPL’s Participation

With the advancement and development of economic globalization,the enterprises are facing more and more fierce market competition. Thecompetition among enterprises is gradually changing to the competitionbetween supply chain and supply chain. The human, financial and materialresources of each enterprise are limited, they do not have the ability to do all thebusiness. Therefore, in order to achieve better business practices, enterprisesoutsource their non core business to the third party to complete to improve theircore ability more quickly. The third party logistics is generated in this case.Thelogistics needs enterprises outsource their logistics to the third party logistics,focusing on their core business, and the third party logistics enterprises arewilling to contract the logistics demand of logistics business needs enterprise, inorder to improve their logistics competitiveness which is their core business. Somore and more third party logistics enterprises are join in the supply chain. Theenterprise which is demand for logistics expects to reduce logistics costs byoutsourcing logistics, while TPL enterprises are expected to increase profit byraising the costs of logistics services, consequently, interest conflict exists insupply chain system with TPL, emerging "double marginal effect".For the three echelon supply chain system being composed of amanufacturer, a TPL service provider and a retailer, when the TPL serviceprovider is leading enterprises, and the market demand function is a nonlinearfunction about retail price, this thesis studies optimal decision of supply chainand profit allocation under the optimal decision, for the sake of eliminating"double marginal effect", to achieve the the supply chain system’s perfectcoordination finally. Firstly this thesis reviews literature about the coordinationmanagement theory of supply chain in which TPL is involved, and summarizes the shortcomings of previous studies, basing on which the research direction isdecided.Then the thesis sets up the basic model of three echelon supply chain, andanalyzes the decision-making condition in three kinds of case: each nodeenterprise’s decentralized decision-making, part cooperation and fullcooperation. The study finds the supply chain’s total profit is optimal whennode enterprises cooperating fully, and with the deepening cooperation, logisticsservice price, wholesale price and retail price are lower and lower, orderquantity is more and more, and production number becomes less.Finally, under the optimal decision of node enterprises’fully cooperation inthe supply chain, if one-time cooperation, the thesis gives three kinds of profitdistribution method to meet the different distribution requirements: the MCRSmethod, modified Shapely value method and the Nash negotiation model.Through an example analysis to summarize the characteristics of three kinds ofdistribution methods, and find that under the three distribution results,manufacturer’s profit growth rate were lower than retailer, the manufacturer as asecondary dominant enterprise in the long term cooperation is not willing toaccept. So it gives the dynamic coordination pricing strategy to allocate thelong-term cooperation profit in the supply chain system, namely throughdynamically changing logistics service price, wholesale price and retail price toreach the goal of reasonable allocating the total profit of the supply chain. Thestudy find that the wholesale price will increase with the larger of its shareproportion of logistics service price and its profit distribution coefficient, theTPL’s service price will increase with the greater of its profit distributioncoefficient. Through the example analysis proves the profit distributionmethod’s feasibility and validity.