A simulation and prediction model to enhance e-service sharing and SCM market competition

Traffic behavior in a large-scale logistic network can be viewed as a complex non-linear system. It is very difficult to illustrate the long-term network service traffic behavior in a large-scale network. The Internet, underlying the modern SCM, can be seen as the combination of Service Providers (SPs) and Internet Service Exchange (IXPs) providers. There are increasing professional logistic service providers become brick-and-mortar SP-firms in e-business. Due to market competition among SPs and IXPs, Internet users, such users of logistic services, will experience a different and enhanced quality of services (QoS), consequently affecting the network traffic model. This paper presents a cybernetic traffic model in the IXPs / SPs environment, this model simulates IXPs / SPs market competition behavior and determines that Exchange- providers´ market share will be diluted through market competition. Routing as well as service binding strategies are presented / proposed in this study. This paper is also to present routing strategies to vary according to the different competing environments resulting in a model that is meant to lead competitive pricing strategies and capacity allocation for intelligent SCM decision support.