Service Order Allocation Based on Multi objective Dynamic Programming

Abstract:

This paper analyzes how an individual logistic service integrator distributes its orders to the functional service suppliers in service supply chain. We introduce a dynamic integer programming model with multiple tasks and targets, in multiple periods. An example is given to prove the feasibility of the model. We also propose an updating model to schedule order distributions in multi periods, with the introduction of the mechanism of executing part of the solution then adjusting according to the updating information. We conduct a simulation. Based on a comparison between the linear weights MOP model and the service constrain model, the simulation result demonstrates that our model generates a lower cost while ensuring the satisfaction of service requirement.

Key words:logistic service; order allocation; information updating; multi objective dynamic programming; integer programming