The Research on Coordination of JIT Delivery Models

Just in time (abbreviate JIT) purchasing is an important approach to shorten the response time of supply chain efficiently and implement the agile operation of supply chain. The ideal JIT purchasing is such delivery which happened until the demand occurred for the supply of a small number and many time, requiring a high level of quality availability, and avoiding unnecessary wastage of the test. From the supply chain perspective, the success of JIT purchasing must depend on the effective coordination and cooperation between the upstream and downstream enterprises in supply chain system. According to the different powers of purchaser and supplier in JIT purchasing and the different strategies of purchaser and supplier, the Stackelberg game and the cooperative model on purchaser and supplier is firstly built up in this paper. Then, the equilibrium solutions of two models are compared and analyzed. Lastly, the coordination method is put forward which can realize the allocation of costs, so the cooperation of purchaser and supplier can realize. The results can help for purchaser and supplier to determine corresponding strategy of purchase and strategy of supply respectively.