Abstract: After analysis and description of delivery policy 1 that the manufacturer takes charge of the cost caused by compressing lead time, and delivery policy 2 that the manufacturer and suppliers both takes charge of the cost, supply coordination model of assembly supply chain based on two-supplier and one manufacturer under different delivery policies are established. The stackelberg model of assembly supply chain based on two-suppliers and one-manufacturer is constructed according to policy 1 and the optimal decision of each side is given. According to policy 2 the joint inventory model of assembly supply chain based on two-suppliers and one-manufacturer system is built up, and the algorithm of optimal solution is given. Then range of the cost sharing coefficient is given after analysis of the situation that policy 2 is superior to policy 1, and then the coordination policy of asymmetric nash equilibrium is put forward based on adapted expected utility theory. The two delivery policies are compared and the sharing collaborative policy is proved effective in numerical example.

Key words: Assembly supply chain, Delivery policy, Expected utility theory, Stackelberg game, Two-suppliers and one-manufacturer