A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service

Customization degree is a very important field of mass customization. Its improvement could enhance customer satisfaction and further increase customer demand while correspondingly it will increase service price and decrease customer satisfaction and demand. Therefore this paper discusses how to dea...

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Main Authors: Weihua Liu, Qian Wang, Donglei Zhu, Yang Liu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2014/212574
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author Weihua Liu
Qian Wang
Donglei Zhu
Yang Liu
author_facet Weihua Liu
Qian Wang
Donglei Zhu
Yang Liu
author_sort Weihua Liu
collection DOAJ
description Customization degree is a very important field of mass customization. Its improvement could enhance customer satisfaction and further increase customer demand while correspondingly it will increase service price and decrease customer satisfaction and demand. Therefore this paper discusses how to deal with such issues in logistics service supply chain (LSSC) with a logistics service integrator (LSI) and a customer. With the establishment of customer demand function for logistics services and profit functions of the LSI and the customer, three different decision modes are proposed (i.e., customization degree dominated by LSI, customization degree dominated by customer, and customization degree decided by concentrated supply chain); many interesting findings are achieved. Firstly, to achieve customization cooperation between LSI and customer, measures should be taken to make the unit increase cost of the customized logistics services lower than a certain value. Secondly, there are differences between the optimal customization degree dominated by LSI and that dominated by customer. And in both cases, the dominator could realize more profit than the follower. Thirdly, with the profit secondary distribution strategy, the modified decentralized decision mode could accomplish the maximum profit achieved in centralized decision mode and meanwhile get the optimal customization degree.
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institution Kabale University
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spelling doaj-art-3a9b01054ceb4bf4a1a9d440d28b49052025-02-03T06:01:39ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/212574212574A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization ServiceWeihua Liu0Qian Wang1Donglei Zhu2Yang Liu3College of Management & Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management & Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management & Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management & Economics, Tianjin University, Tianjin 300072, ChinaCustomization degree is a very important field of mass customization. Its improvement could enhance customer satisfaction and further increase customer demand while correspondingly it will increase service price and decrease customer satisfaction and demand. Therefore this paper discusses how to deal with such issues in logistics service supply chain (LSSC) with a logistics service integrator (LSI) and a customer. With the establishment of customer demand function for logistics services and profit functions of the LSI and the customer, three different decision modes are proposed (i.e., customization degree dominated by LSI, customization degree dominated by customer, and customization degree decided by concentrated supply chain); many interesting findings are achieved. Firstly, to achieve customization cooperation between LSI and customer, measures should be taken to make the unit increase cost of the customized logistics services lower than a certain value. Secondly, there are differences between the optimal customization degree dominated by LSI and that dominated by customer. And in both cases, the dominator could realize more profit than the follower. Thirdly, with the profit secondary distribution strategy, the modified decentralized decision mode could accomplish the maximum profit achieved in centralized decision mode and meanwhile get the optimal customization degree.http://dx.doi.org/10.1155/2014/212574
spellingShingle Weihua Liu
Qian Wang
Donglei Zhu
Yang Liu
A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service
Discrete Dynamics in Nature and Society
title A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service
title_full A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service
title_fullStr A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service
title_full_unstemmed A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service
title_short A Determination Method of Optimal Customization Degree of Logistics Service Supply Chain with Mass Customization Service
title_sort determination method of optimal customization degree of logistics service supply chain with mass customization service
url http://dx.doi.org/10.1155/2014/212574
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