Effects of coordination policies on logistics performance in supply chains

Wang Miao and Ren Peiyu

Abstract

With global competition, firms are redesigning their supply chains to meet the challenge. Logistics have played a particular important role where production is either of diffusion or of concentration. The transport coordination implies not only to reduce costs, but to respond quickly to final market. In the paper, an input-output model to analyze logistics flows is proposed, for supporting coordination policy at the level of the whole supply chain. Logistics flows between firms’ processes are modeled and different coordination policies ranging from hierarchy to market are examined. The effects of such policies on logistics performance are evaluated.