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The optimal decision of customer order decoupling point for order insertion scheduling in logistics service supply chain

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  • Liu, Weihua
  • Liang, Zhicheng
  • Ye, Zi
  • Liu, Liang

Abstract

Customer demand for order insertions impacts the position of the customer order decoupling point (CODP) in a logistics service supply chain (LSSC). This paper focuses on how the parameters of inserted orders affect the position of the CODP when a logistics service integrator (LSI) is operating a mass customization logistics service. Considering customer demand for orders to be inserted, a CODP decision model for LSSCs is developed based on a two-echelon LSSC consisting of an LSI and several customers. The objectives of the model are to maximize the profit and to ensure the comprehensive satisfaction of the LSI. Conducting numerical analyses on a specific dataset, it was discovered that the scale effect coefficient and service volume of the inserted order have a clear influence on the CODP decision, while the order variation coefficient does not. Furthermore, the LSI will not accept an inserted order when the inserted order has a high variation coefficient or a low price.

Suggested Citation

  • Liu, Weihua & Liang, Zhicheng & Ye, Zi & Liu, Liang, 2016. "The optimal decision of customer order decoupling point for order insertion scheduling in logistics service supply chain," International Journal of Production Economics, Elsevier, vol. 175(C), pages 50-60.
  • Handle: RePEc:eee:proeco:v:175:y:2016:i:c:p:50-60
    DOI: 10.1016/j.ijpe.2016.01.021
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    References listed on IDEAS

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    1. repec:eee:proeco:v:193:y:2017:i:c:p:1-11 is not listed on IDEAS
    2. Weihua Liu & Enze Bai & Liwei Liu & Wanying Wei, 2017. "A Framework of Sustainable Service Supply Chain Management: A Literature Review and Research Agenda," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-25, March.

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