A Single-Vendor Single-Buyer Supply Chain Coordination Model with Price Discount and Benefit Sharing in Fuzzy Environment
Keywords:
supply chain management, coordination, price discount, fuzzy, centroid methodAbstract
Coordination among the participating members of a supply chain is a major issue for all successful decision makers. In the literature, numerous supply chain models have been developed based on exact (known) parameter-values. However, in reality, vagueness of parameter-values is frequently observed in many circumstances. In this article, we develop a two-stage supply chain model with a single vendor and a single buyer, and design a coordination mechanism through price discount policy with incomplete information of demand and cost parameters. We first develop the model imposing fuzziness in demand and then fuzziness in all the cost components. In each case, centroid method is used for defuzzification. A solution procedure is outlined and suitable numerical examples are given to determine the optimal results of the proposed fuzzy models.
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