An analysis of supply chain game model with a third party logistics service provider involved

A supply chain with a Third Party Logistics (TPL) service provider involved is studied using game theory. The factor of logistics service level is considered to see the effect on the supply chain´s total profit. In addition, the profit allocation problem is also discussed in the paper. Then we find out that, when supplier, retailer and TPL use the collaborative decision-making strategy, the sales volume will increase, the logistics service will be improved and the total profit will rise too. With a reasonable allocation method, supply chain members will cooperate actively to realize the Pareto improvement.