Allocation of the Joint Distribution Cost

In this paper, the formulation is given to determine the variable cost of joining logistics in joint distribution. The authors also provide out two steps way to allocate fixed cost of the joining logistics enterprises in joint distribution. Firstly, the joint fixed cost is allocated according to how many works the joining logistics enterprises have offered. Secondly, fixed cost is allocated according to profit each work can get, and a mathematic model is set up to figure out the total cost of joining logistics enterprises, and an example is given out to show how to figure out and allocate the cost of joint distribution. The authors stress that it is unreasonable to figure out the cost of joint distribution without thinking about the works the joining logistic enterprises have taken and the capacity the works can get profit.