Self-Coordination Mechanism Driven by Lead Time and Forecast Accuracy in Service Design

System of service-replenishment policy design is proposed for seasonal product, respectively in single order and multi cycle replenishment policy. The endeavor of retailer's increasing forecast accuracy and supplier's decreasing replenishment lead time are studied for their influences on the service-replenishment design system. For each single order, the influence from the two endeavours is self-contradictory: the supplier's contribution of lead time decreasing is hurt by lot size reduce from retailer's endeavor of forecast accuracy increasing. But for multi cycle policy of quick response, a self-coordination mechanism driven by the two endeavors exists in the service-policy design system, which can alleviate the contradiction spontaneously like an invisible hand. In this mechanism, the two endeavors increase and stabilize service level, and decrease safety inventory during most period of the season, which means that the system itself can also benefit supplier by lot size increasing and stability, and then, benefit the supply chain as a whole.