Logistics Service Supply Chain Coordination Using Combined Contracts Considering Service Level

With the rapid development of social and economic globalization,socialization and outsourcing of logistics are gradually widespread,which enhance the rapid development of the logistics service industry.In order to improve the competitiveness of the overall logistics service supply chain(LSSC)in which the integrator is the core member,it is necessary to coordinate the LSSC.Contract coordination has become an effective means to improve operational efficiency by incenting the node enterprises in manufacturing supply chains,however,it is need to study whether it act similarly in LSSCs.For service supply chain,the level of service is one of the main factors influencing the demand from customers.Behavioral factors will affect the decision-making of supply chain members,and further influence the supply chain coordination effect.Thus,study on contract coordination to LSSC considering the service quality and fairness preference in has both theoretical and practical significance.First,considering the affect of service level on demand in a three-level logistics service supply chain consisting of integrators,suppliers and subcontractors,with the expected profit maximization as the objective,two decision models were established for the centralized decision-making and decentralized decision-making situations respectively.The model proved the existence of the optimal decisions,and by comparing the results from the two situations,the study found that decentralized decision does not reach supply chain coordination.Second,wholesale price discount contract and revenue sharing contract coordination models were constructed respectively,and the optimal contract parameters were expressed.However,from numerical analysis,it was found that both single-contract coordination have limitations.Third,a combined contract coordination model was built which combines wholesale price discount contract and revenue sharing contract,and the service cost sharing was also considered.The optimal contract parameters were expressed.It was found that these combined contracts can coordination the supply chain better.At last,the fairness preference factors of integrators,suppliers and subcontractors were introduced respectively into utility models of combined contract coordination,to study the impact of supply chain members' fairness preference on logistics service supply chain coordination.Study found that fairness preference affects the optimal parameter setting in combined contract coordination,and it also affects the optimal decisions;it is also found from the example analysis that the greater the fairness preference,the greater its impact on the utility.