Service capacity procurement in logistics service supply chain with demand updating and reciprocal behaviour

2021 ◽  
Vol 15 (1) ◽  
pp. 35
Author(s):  
Weihua Liu ◽  
Wanying Wei ◽  
Donglei Zhu
Keyword(s):  
Supply Chain ◽  
Service Capacity ◽  
Logistics Service ◽  
Service Supply Chain

Capacity Procurement in Logistics Service Supply Chain with Demand Updating and Rational Expectation Behavior

2017 ◽  
Vol 34 (06) ◽  
pp. 1750029 ◽  
Author(s):  
Weihua Liu ◽  
Donglei Zhu ◽  
Yijia Wang
Keyword(s):  
Supply Chain ◽  
Rational Expectations ◽  
Rational Expectation ◽  
Service Capacity ◽  
Logistics Service ◽  
Service Supply Chain ◽  
Order Quantities ◽  
Purchase Quantity ◽  
First Time ◽  
Strategy I

This paper discusses the applicable conditions of two capacity procurement sub-strategies with two ordering opportunities, namely, sub-strategy I in which only increasing purchase quantity is allowed during the second ordering opportunity, and sub-strategy II in which either increasing or reducing order quantities is possible when the second order is placed. Our research is in the context of a logistics service supply chain (LSSC) consisted of a logistics service integrator (LSI) and a functional logistics service provider (FLSP). LSI purchases first a service capacity from FLSP long before demand is realized and then adjusts this ordering quantity based on demand updating. We developed the profit models for LSI and FLSP which also include the constraints of rational expectations. Based on the assumption of Bayesian updating, this paper investigates the conditions for sub-strategy II outperforming sub-strategy I. The main results are verified through numerical analysis. Counter-intuitively, sub-strategy II is not necessarily always better than sub-strategy I. When using sub-strategy II, LSI needs to purchase more service the first time of placing orders, but the expected profits increase for both LSI and FLSP only with certain conditions, which have been derived as propositions in this paper.

scholarly journals Logistics service supply chain order allocation mixed K-Means and Qos matching

2021 ◽  
Vol 188 ◽  
pp. 121-129
Author(s):  
Shuiwang Zhang ◽  
Cancan Bi ◽  
Min Zhang
Keyword(s):  
Supply Chain ◽  
Order Allocation ◽  
Logistics Service ◽  
Service Supply Chain ◽  
Chain Order
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