Research on the Selection of Logistics Suppliers Considering Cost and Reliability

Incentive mechanism for logistics service provider's service quality improvement is studied. First, we design a revenue sharing contract to promote logistics provider quality improved behavior. The effect of the contract without counting the opportunism behavior is analyzed. The results show that the contract can encourage logistics provider to improve logistics service quality. Second, in view of logistics provider's opportunistic behavior, we established an evolution model combining reward and punishment using the evolutionary game theory. The results show that only combining reward and punishment, the mechanism can play a good incentive effect. Finally, on the basis of the above research, some advices on the logistics services integrator cooperation with logistics provider are given.