Research On Lead Time And Cost Facing Supply Chain Coordination

The competition in 21st century is the competition between the different supply chains;Supply chain coordination is the key element to strength the power of the whole supply chain,so supply chain coordination management is the realistic and rational choice for the members of supply chain. If the supply chain is good at coordination among its members,the supply chain will exist for a long time and its power of competition will be improved; If don't,this supply chain will be washed out because of the fierce competition in the market.Supply chain coordination includes various and multi-level knowledge.This thesis studied the effect of lead time to the supply chain coordination from the view of cost,which is based on the reference to the results of relevant researches at home and abroad. This paper made the analysis of activities in various stages of supply chain,discussed the structure of supply chain cost,and then discussed the relations between the lead time and supply chain cost from the theory point of view. According to the results of theory analysis,this paper designed a two-level supply chain which is constituted by a supplier and a buyer,and the supplier is a manufacturing factory. Some assumptions are used in this paper,according to the assumptions the models of supply chain cost and its members are designed,after the mathematical calculation and logical analysis,finally we find out a method to determine the optimal lead time and the order quality of the buyer.Due to the particularity of the model built in this paper,there is no available actual data for calculation.Therefore,we use a numerical example to validate the model and got the same conclusions as we discussed above.We also did further analysis of results of the example,gave a practical way of coordination in supply chain based on lead time. At the last part of this paper,we discussed the impact of lead time compression on the supply chain,and gave a method named"Grey Relational Analysis"which is proved to be correct and effective in determining the major and minor constituent elements of lead time.We also discussed the how to compress the lead time based on the method of Gray Relational Analysis.