Coordination for the Joint Determination of Ordering Policy and Service Level in Decentralized Supply Chain With Unspecified Lead Time

In this paper a two-stage supply chain with a buyer and seller have been studied. It is assumed that lead time is probabilistic and demand is fixed. In the decentralized model it can be observed each supply chain member try to make the decision to maximize their profits and it will effect on the other members of supply chain and in the comparison with centralized model with assuming the seller as the leader of supply chain all of the decision decided by seller and it can be observed that profit of all of the supply chain is really more than of all of the profit of the decentralized model. In this approach with determining the optimum ordering and service level that the result will be not only increasing the profit of all of the supply chain but also the service level of the costumer will grown substantially.