The Coordination for Logistics Alliance of Manufacturer and TPL with Uncertain Demand

In the alliance of the manufacturer and TPL, the manufacturer logistics service would exist in supply short risk because the market demand which the manufacturer facing was uncertain. The coordination of logistics alliance was studied with uncertain logistics demand. Firstly, the decision behaviors of the manufacturer and TPL were analyzed in decentralized decision. Then the results between decentralized decision and centralized decision were compared, and found that decentralized decision couldn’t reach the performances of centralized decision. The coordination mechanism based on cost-sharing was proposed. The analysis results of the coordination model indicated that the Pareto improvement of logistics alliance parties and the optimization of whole alliance could be achieved by designing appropriate cost-sharing ratio.