Manufacturer’s coordination mechanism for single-period supply chain problems with fuzzy demand

In this paper, we consider the coordination problem for single-period supply chain problems with fuzzy demand. An efficient coordination mechanism is designed from the manufacturer’s point of view. By setting different wholesale prices for different order quantities, the manufacturer can induce the...

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Bibliographic Details
Published in:Mathematical and computer modelling 2010-03, Vol.51 (5), p.693-699
Main Authors: Xu, Ruoning, Zhai, Xiaoyan
Format: Article
Language:English
Subjects:
Combinatorics
Combinatorics. Ordered structures
Coordination mechanism
Designs and configurations
Exact sciences and technology
Fuzzy demand
Mathematical analysis
Mathematics
Methods of scientific computing (including symbolic computation, algebraic computation)
Numerical analysis. Scientific computation
Optimal profit
Sciences and techniques of general use
Supply chain
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Summary:In this paper, we consider the coordination problem for single-period supply chain problems with fuzzy demand. An efficient coordination mechanism is designed from the manufacturer’s point of view. By setting different wholesale prices for different order quantities, the manufacturer can induce the retailer to order the right quantity, and therefore realize the maximum supply chain profit. It is shown that both the manufacturer and the retailer can benefit from the coordination by choosing the sharing proportion in an appropriate interval.
ISSN:0895-7177
1872-9479
DOI:10.1016/j.mcm.2009.10.039