Abstract: This paper considers a one-time logistics of a product in a multi-stage supply chain system,and a dynamic planning model of logistics capability is presented for this system.The quantity as one important index of the logistics capability is analyzed theoretically,and the optimal logistics capability with the lowest system cost and flow quantity allocated at every stage are derived.The optimal logistics capability policy can be characterized by two critical numbers: the lower and the upper.If available input is less than the lower,one chooses no logistics capability; if the available input exceeds the lower,one tries to provide capability as much as possible,but nomore than the upper.The principle of mathematical induction is used to prove the conclusion,and a numerical example to test the result.

Key words: supply chain management, logistics capability, dynamic planning model, mathem atical induction, stochastic demand