Abstract: This paper investigates the basic issues in a perishable-product supply chain from the perspective of supplie-rbuyer stackelberg game with bayesian demand forecast updating,that is when to order,how many to order and what the who lesale price is.A stackelberg game model in which manufacturer is a leader and retailer is a follower is developed.In the model,the manufacturer trades off between or derquantity and wholesale price,the retailer trades off between the crashing cost and forecasterror.Existence of the optimal solution for the model is analyzed and a piecewise it erative algorithms is developed to solve the bi-level programming.At cast,and a numerical instance is given to validate the algorithm and model.Furthermore,a supply chain contract is put forward to coordinate the supply chain and alleviate the double margin in stackelberg game.

Key words: stackelberg game, bi-level prog ramming, information updating, supply chain coordination, contract