Under different liability period T, the manufacturer determines optimal inventory lower bound I* according to its cost function and the supplier’s response function. Later, the supplier optimizes its replenishment parameter Q* and r* according to liability period T and optimal inventory lower bound I*. As listed in Table 1, if liability period T is short, the manufacturer will not make any inventory requirements of the lower bound I* in supplyhub. In that case, most of the components inventory cost will be undertaken by the manufacturer, and the greater I* is, the higher the inventory cost will be. As liability period T is extended, the manufacturer’s optimal decision I* will increase. As a result, r* is monotonically increasing with I*, which reduces the stock-out occurrence of components.