Coordination mechanism analysis for supply chain with fuzzy demand

To guarantee profit for supply chain memebers,in a two-stage supply chain composed of one supplier and one retailer,the supply chain coordination mechanism was studied under a fuzzy demand environment. The market demand was considered as a fuzzy variable. Models of decentralized decision,centralized decision,revenue sharing contract and return contract under uncertain theory were constructed based on credibility distribution. Triangular fuzzy variable was used to optimize these models and their optimal policies were also presented. Finally,numerical example was applied to resolve parameters in these models,and analysis results were also verified. Under a fuzzy demand environment,it was revealed that the double marginalization effect still existed. In supply chain coordination mechanism,the expected profit of the members could be improved remarkably compared to in decentralized decision by changing contract coefficient. In addition,the expected profits for each member in revenue sharing contract were equaled to that in return contract when Nash-bargaining solution was reached.