Lead-time reduction in a two-level supply chain: Non-cooperative equilibria vs. coordination with a profit-sharing contract

This paper considers game-theoretic models of lead-time reduction in a two-level supply chain involving a manufacturer and a retailer. The retailer manages her inventory system using the order quantity, reorder point, continuous-review (q,r) policy. To satisfy the retailer's order, the manufacturer sets up his facility, implements a pre-determined production schedule and delivers finished products to the retailer. In our paper, the lead-time …