The coordination of supply chain with fuzzy demand

Authors:
Jie Wei;Xiongwen Quan;Aisheng Xia;Meiying Li
Affiliations:
General Courses Department, Academy of Military Transportation, Tianjin, China;College of Information Technical Science, Nankai University, Tianjin, China;General Courses Department, Academy of Military Transportation, Tianjin, China;General Courses Department, Academy of Military Transportation, Tianjin, China
Venue:
CCDC'09 Proceedings of the 21st annual international conference on Chinese Control and Decision Conference
Year:
2009

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Abstract

A supply chain with one manufacturer and one retailer was considered in this paper. The manufacturer produces a product, and sells it to a retailer who faces fuzzy unit ordering cost, and fuzzy unit inventory holding cost. By using credibility theory, we established a coordination mechanism through revenue-sharing contract, which can fully coordinate the decentralized supply chain system. At last, an numerical example is given.