2012Journal of Transportation Engineering and InformationRequires access

Stackelberg Decision in a Supply Chain Based on Controllable Lead Time

Zhang Zhi-yong

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Abstract

Time is a bottle-neck element of the supply chain agile operation in practice.In Stackelberg model of a supply chain between the upstream and downstream stages,a supply chain model based on controllable lead time was constructed.Through calculation of the supply chain model,this paper analyzed the influence lead time crashing cost sharing and the delay penalty impact on the lead time,order quantity and supply cost.It is pointed out that optimal lead time and order quantity decision-making existed in a supply chain,which could get the supply chain optimal decision.The result from an example revealed that the mode1 could optimize the decision making of the supply chain upstream and downstream enterprises.Therefore,it provided a piece of scientific evidence for the p1anners to deve1op effective solutions.

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What this paper is about

Time is a bottle-neck element of the supply chain agile operation in practice.In Stackelberg model of a supply chain between the upstream and downstream stages,a supply chain model based on controllable lead time was constructed.Through calculation of the supply chain model,this paper analyzed the influence lead time crashing cost sharing and the delay penalty impact on the lead time,order quantity and supply cost.It is pointed out that optimal lead time and order quantity decision-making existed in a supply chain,which could get the supply chain optimal decision.The result from an example revealed that the mode1 could optimize the decision making of the supply chain upstream and downstream enterprises.Therefore,it provided a piece of scientific evidence for the p1anners to deve1op effective solutions.

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Available abstract

Time is a bottle-neck element of the supply chain agile operation in practice.In Stackelberg model of a supply chain between the upstream and downstream stages,a supply chain model based on controllable lead time was constructed.Through calculation of the supply chain model,this paper analyzed the influence lead time crashing cost sharing and the delay penalty impact on the lead time,order quantity and supply cost.It is pointed out that optimal lead time and order quantity decision-making existed in a supply chain,which could get the supply chain optimal decision.The result from an example revealed that the mode1 could optimize the decision making of the supply chain upstream and downstream enterprises.Therefore,it provided a piece of scientific evidence for the p1anners to deve1op effective solutions.

Key concepts: Supply chain, Stackelberg competition, Lead time, Upstream (networking), Downstream (manufacturing), Lead (geology), Order (exchange), Optimal decision

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