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Chinese Journal of Management Science ›› 2010, Vol. 18 ›› Issue (6): 71-81.

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Transportation and Inventory Outsourcing Decision-makings of Fourth Party Logistics Based on Third Party Logistics Competition

LI Fu-chang1,2, WANG Yong2, ZHANG Zhan-feng2   

  1. 1. School of Economics and Management, Yunnan Normal University, Kunming 650500, China;
    2. School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
  • Received:2009-07-06 Revised:2010-11-09 Online:2010-12-30 Published:2010-12-30

Abstract: The leading position of fourth party logistics (4PL) in logistics outsourcing and the time based competition of third party logistics(3PL) have important impact on logistics out sourcing3.To solve this problem,we develop three stage noncooperative decision making model and inventory transportation integrated optimization(ITIO) model about the price,delivery frequency and task allocation,to analyze the leading position of 4PL and the competition of 3PL.By comparing the two decision making models,we study the impact of decision-making power on individual and system performance,and use numerical analysis to verify the conclusions Studies show that: when 3PLs are homogenous and the ratio of 3PL's task allocation is 0.5,delivery frequency of three stage decision making model is 29% lower than the optimal value of IT IO,invent ory holding cost is 41% higher,logistics cost is 21% lower,and total cost is 9% higher.Although ITIO model has certain cost advantages,putting too much emphasis on coordination is not conducive to the competition and improvement of 3PL.

Key words: three-stage decision-making model, inventory transportation integrated optimization (ITIO) model, price of logistics services, delivery frequency, the ratio of task allocation

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