Model Research Of Two-Stage Supply Chain Competition Under Delivery Time Uncertainty

There are many papers studing demand uncertainty of supply chain, this paper concentrates on the delivey uncertainty. We analyse the competition of a two-stage supply chain which consists only one supplier and one retailer. Owing to many uncertain factors, the supplier can not ensure timely dilivery, and this kind of uncertainty contributes to different decision making ways from each supply chain members.This paper consider both RMI and VMI when delivery time uncertain. Firstly, we build the Stackelberg model under RMI, and we can acquire the knowledge such as retailer’s optimal order quantity, supplier’s optimal revenue-sharing way and performance of each supply chain member. Then we compare the results with integrated supply chain, at the end of this model, we introduce surplus subsidy to optimize the supply chain. Secondly, we discuss VMI, given the Stackelberg model to show supplier and retailer’s expected profit, and then we can achieve the supplier’s optimal production and retailer’s optimal revenue-sharing portion. In addition, our study also introduce surplus subsidy to the supply chain.Finally, we conduct the numerical analysis to work out the relative parameters, after that we can see our study indicates that, delivery uncertainty will influence both RMI and VMI’s supply chain profit, it will decline according to the uncertainty. Under RMI, production cost and wholesale price have significant influence on supply chain performance, so if the decision maker proposes to use integrated supply chain to advance the performance, then it’s better to lower these two factors. Under VMI, production cost have significant influence on supply chain performance, then this is the most remarkble aspect to underline.What’s more, we can achieve the most suitable subsidy share according to each mode, and make it clear of the profit distribution of supply chain members, as a result, Pareto range can be seen clearly.