The analysis on lead time hedging on order decision-making in supply chain

The lead time hedging comes from the scenario that the retailers prefer to order in advance so that they can satisfy their customer on time, of which cause is the uncertainty of the delivery time. Hence, we consider the lead time hedging as the decision variable for the retailer and present models to compare the optimal lead time hedging on different scenario. Finally, we make a detailer description and comparison the lead time hedging on different derived factor. The results show that the base-delivery wholesale price can urge the retailer to share the information with the manufacture and decrease the lead time hedging.