Abstract: A decentralized supply chain consisting of a supplier and two competitive retailers is investigated in this paper.A joint pricing and delivery lead time decision model facing price and lead time sensitivity demands is established,and then optimal decisions policies for pricing and planned lead time are given. Next,decision efficiency of the decentralized supply chain is examined using the performance of the corre sponding centralized system as a benchmark.Finally,numerical examples are used to analyze impacts of price sensitivity,lead time sensitivity,and channel competition sensitivity on the decision efficiency of the supply chain system.The results show that,the competition between downstream channels contributes not only to improve the decision efficiency of the decentralized system,but to shorten the planned delivery lead time,so that the competence of the whole supply chain in the market will be correspondingly upgrade.

Key words: decentralized supply chain, price-and lead time-sensitive demands, retailers’competition, planned delivery lead time, decision efficiency