RESEARCH ON LEAD-TIME REDUCTION OF TWO-STAGE SUPPLY CHAIN BASED ON STACKELBERG GAME

RESEARCH ON LEAD-TIME REDUCTION OF TWO-STAGE SUPPLY CHAIN BASED ON STACKELBERG GAME

Hao-ran Shi1, 3, Kejian Liu2

1School of Energy and Environment, Xihua University, 610039, Chengdu, P.R.China

2School of Mathematics and Computer Engineering Xihua University, 610039 Chengdu, P.R.China

3School of Transportation and Logistics, Southwest Jiaotong University, 610031, Chengdu, P. R. China

In the two-stage supply chain, under the model of lead time reduction management cost shared by upstream and downstream based on Stackelberg Game, when suppliers have the priority of decision right rather than retailers, it is more advantageous to reduce the cost and the lead time and can reach the maximum profit for the whole supply chain.