Abstract: A policy of coordinating inventory by common replenishment periods for a kind of lot-for-lot supply chain is studied and analyzed.In this supply chain,a supplier provides a single product to a single retailer who experiences stochastic demand.Under the proposed policy,the supplier specifies common replenishment periods.The supplier offers the retailer a price discount while the retailer’s replenishment period is in harmony with the supplier’s.It’s regarded as a Stackelberg game.After an approach to the game is developed,a numerical study is conducted and the benefit of applying the policy under certain conditions is analyzed.

Key words: supply chain, lot-for-lot, inventory coordination, stochastic demand, common replenishment period