Supply Chain Performance under Consignment Contract with Time-and-Price Sensitive Demands

In this paper, we construct the decentralized and centralized decision-making models of supply chain under consignment contract based on uncertain response time and time-price sensitive demands in a two-stage supply chain system. And we solve the models to find the optimal solutions. At the same time, the effectiveness of each decision-making mode on supply chain profits is discussed by comparing the supply chain total profits. The results of research show that for a two-stage supply chain under consignment contract, the supply chain total profits in centralized-making decision mode is always higher than that in decentralized case. In addition, when the supplier's average response time is shorter, and the sensitivity of customer demand to supply chain response time and product price is lower, the implementation of centralized decision-making mode is more favorable.