Research on the Optimal Theoretical Value of Enterprise Logistics Service Level

Logistics service level and logistics cost are in contradiction while they are also in inter-linkage unity from empirical aspect. Through analyzing the game relationship between enterprise logistics service level and logistics cost, the function relationship between logistics service level and logistics cost (sales income) is simulated with the help of the least square method. Basing on these, the model aiming at maximum-profit which is used to get the optimal theoretical value of enterprise logistics service level is constructed. Through solving the model, the balance point between logistics service level and logistics cost in the game which is also the maximum-profit point can be achieved. Correspondingly, the optimal logistics cost and composing values of evaluated indexes of logistics service level are achieved which can support enterprises to make a sensible decision on logistics service level and standards.