The Study on Stackelberg Game of Supply Chain Coordination with Uncertain Delivery

Coordinating producer and supplier is one of main issues of supply chain with uncertain delivery. Considering interaction between the members in supply chain, based literature [Kirstin, Z (2002)], there is Stackelberg game problem in supply chain, where the leader is producer and the follower is supplier. A kind of Stackelberg game of supply chain is discussed in this paper. And the solution of Stackelberg game is deduced. Applying genetic algorithm, a simulation about tail rolled steel products is done based on ShangHai BaoSteel industry & trade co.. The solution is adopted for implementing JIT in the supply system of ShangHai BaoSteel industry & trade co.. And simulation solutions about independent optimization, joint optimization and Stackelberg game are compared. It shows that Stackelberg game is effective and practical