Supply collaboration in supply chain under uncertain delivery time and BOM pay-on-produce mode

Supply collaboration model of two-suppliers & one-manufacturer under uncertain delivery time and Bill of Material (BOM) pay-on-produce mode was established when the demand was sensitive to both price and delivery time. After the assumption was made and related parameters were defined, the profit decision model of supply chain without supply collaboration was analyzed and the optimal decision of supplier and manufacturer was given. Then, the profit decision model of supply chain with supply collaboration was considered. Numerical Example showed the profit of supply chain with supply collaboration was much higher than without supply collaboration, but the manufacturer's optimal price and supplier's delivery time with supply collaboration was lower than without supply collaboration.