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In the actual order allocation process of Logistics Service Supply Chain (LSSC), Functional Logistics Service Providers (FLSPs) are strategic: they will pre-estimate the order allocation results to decide whether or not to participate in order allocation. Considering a two-echelon Logistics Service Supply Chain (LSSC) consisting of one Logistics Service Integrator (LSI) and several competitive FLSPs, we establish an order allocation optimization model of LSSC based on the pre-estimate and competitive behavior of FLSPs. The model considers three objectives: to minimize the cost of LSI, to maximize the order satisfaction of FLSPs and to match the different logistics capacities of FLSPs as much as possible. Numerical analysis is performed to discuss the effects of the competition among FLSPs on the order allocation results. The results show that with the rational expectations equilibrium, competitions among FLSPs help improve the comprehensive performance of LSSC.

An Order Allocation Model based on the Competitive and Rational Pre-Estimate Behavior in Logistics Service Supply Chain