This paper presents a mathematical model of trade-off relations arising in third party logistics using Pareto optimal solutions for multi-objective optimization problems. The model defines an optimal set of distribution costs and service levels constituting a trade-off relation. An analogy to the concept of the indifference curve in the field of economics is discussed. Numerical experiments for a simplified problem are performed, demonstrating an increasing process of the utility of logistics. © 2008 Elsevier B.V. All rights reserved.
Nanazawa, Y., Suito, H., & Kawarada, H. (2009). Mathematical study of trade-off relations in logistics systems. Journal of Computational and Applied Mathematics, 232(1), 122–126. https://doi.org/10.1016/j.cam.2008.10.035