A Study of Model for Optimizing Supply Chain Inventory with Controllable Lead Time.

This paper has put forward the importance of shortening lead time in the competition of modern society and researched the decision-making problem in a supply chain system consists of one supplier and one retailer. Basing on the hypothesis that the decision-making power of determining the lead time is controlled by the downstream, which completely undertakes the expenses for shortening the lead time, this paper has established a Stackelberg model of this supply chain system, and given out some corresponding algorithms for reference. Finally according to the analysis of cases, this paper has confirmed the practicality and effectiveness of the model, and proved that shortening the lead time reasonably can reduce the supply chain inventory cost effectively. [ABSTRACT FROM AUTHOR]