A Logistics Service Differentiation Decision Model Based on Service Level

This paper sets up a decision-made process model of logistics service differentiation based on market segments and customer demands analysis and elaborates the design of logistics service differentiation and the total cost service analysis. Especially, this paper provides a method of cost-service tradeoffs through the determination of the lowest demand quantity, which is determined by the quota relations among the income, the unit logistics cost and the demand quantity on a certain service level.