Abstract: Equipment reliability is an significant factor affecting supply uncertainty. In order to study the influence of the maintenance strategy within the enterprise on the operation strategy of the entire supply chain, considering the equipment maintenance, the manufacturer's optimal maintenance strategy and production strategy and the retailer's optimal order quantity are studied for the supply chain with a manufacturer and a retailer by Stackelberg game. The results show that the manufacturer's maximum number of preventive maintenance has no relevance to the reliability of the equipment; preventive maintenance can increase the manufacturer's output and reduce the wholesale price of the product, but the optimal output of the manufacturer will not reach the enterprise maximum production capacity; revenue-sharing contract can realize the coordination of supply chain; the manufacturer always has incentive to improve the equipment reliability while the retailer has incentive to fund the equipment improvements only when the market base is large enough.

Key words: supply chain, preventive maintenance, equipment reliability, Stackelberg game