Game Analysis of a Two-Echelon Supply Chain with Random Yield

We study three game models of a two-echelon supply chain with random yield: retailer-leader Stackelberg game model,manufacturer-leader Stackelberg game model and Nash game model,and derive the optimal order quantity and optimal planned production quantity for these models,The findings indicate that when the retailer dominates the supply chain,the optimal order quantity and optimal planned production quantity is greater than those in other models.A numerical example is given to compare the optimal policies and relevant profits between both parties based on those game models when random yield obeys uniform distribution.An important conclusion is that retailerleader Stackelberg game model is better for supply chain to make more profit.