A buyer-vendor EOQ model with changeable lead-time in supply chain

In this paper, we discuss a EOQ model on Stackelberg game in supply chain, that is, a distribution channel system contains one supplier and a single retailer, and the supplier in the channel holds monopolistic status, in which he not only owns cost information about the retailer but also has the decision-making right of the lead time. Under this circumstance, the optimal lead time and order cycle time of the supplier and the retailer, respectively, are investigated, and approximate solutions for then are derived. The analysis is made by numerical data that it's likely to bring the supplier and the retailer profits and losses by controlling the lead time. © Springer-Verlag London Limited 2005.