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Stackelberg Model for Controllable Lead Time Supply Chainwith Service Level Constrains and Its Coordination Mechanism |
YE Fei, LI Yi-Na |
South China University of Technology, Guangzhou,China |
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Abstract From stackelberg leaderfollower game, a controllable lead time supply chain inventory optimization model with service level constrains and its algorithm are proposed based on centralized decison making mode to shorten the lead time of order goods and reduce the inventory cost effectively. The optimization effects of the two models were compared by numerical analysis. The result shows that the optimization effect of the model based on centralized decision making mode is better than that of stackelberg leaderfollower game. The parties of supply chain may not have enough enthusiasm to accept centralized decision making mode, without reasonable incentive mechniss. A kind of inventory cost sharing mechanism is also proposed to stimulate the each party of supply chain to accept centralized decision making mode.
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Received: 22 September 2006
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