An Integrated Vendor-Buyer Model with Exponentially Increasing Demand in Fuzzy Environment
Keywords:
Inventory, supply chain, vendor-buyer model, exponential demand, fuzzyAbstract
In today’s marketing scenario, the coordination between vendor and buyer is getting great importance. A large numbers of supply chain models have been developed on exact parameter values. However, in reality, these parameter values may not be reliable due to vagueness. In this article, we develop an integrated vendor-buyer model with exponentially increasing demand at the buyer. Our purpose is to design a coordination mechanism between the vendor and the buyer with incomplete information about the cost parameters. We assume the set up cost, ordering cost, transportation cost, vendor’s and buyer’s holding costs in the fuzzy sense. We use centroid method for defuzzification of the fuzzy average total cost of the integrated system. The optimal results of the proposed fuzzy model are obtained and sensitivity of key model-parameters is examined through a numerical example.
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