2010•Journal of Changsha University of Science & TechnologyRequires access

Profit-sharing contract model in three-level supply chain under fuzzy demand

Hao Zou

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Abstract

Based on the credibility theory and game theory,the coordination problem of three-level supply chain is studied under the fuzzy demand,which is composed by the manufacturer,distributor and retailer.Through the analysis of the decentralized decision model and the ideal model of the maximum profit under the centralization decision,the coordination model of profit-sharing contract is designed,which makes the node enterprises in the supply chain share profit when the profit distribution parameters are adjusted and calculated reasonably.The example is used to verify the model which can make the enterprise effectively coordinate and make the profit maximization in the market supply of fuzzy demands environment.

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What this paper is about

Based on the credibility theory and game theory,the coordination problem of three-level supply chain is studied under the fuzzy demand,which is composed by the manufacturer,distributor and retailer.Through the analysis of the decentralized decision model and the ideal model of the maximum profit under the centralization decision,the coordination model of profit-sharing contract is designed,which makes the node enterprises in the supply chain share profit when the profit distribution parameters are adjusted and calculated reasonably.The example is used to verify the model which can make the enterprise effectively coordinate and make the profit maximization in the market supply of fuzzy demands environment.

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Available abstract

Based on the credibility theory and game theory,the coordination problem of three-level supply chain is studied under the fuzzy demand,which is composed by the manufacturer,distributor and retailer.Through the analysis of the decentralized decision model and the ideal model of the maximum profit under the centralization decision,the coordination model of profit-sharing contract is designed,which makes the node enterprises in the supply chain share profit when the profit distribution parameters are adjusted and calculated reasonably.The example is used to verify the model which can make the enterprise effectively coordinate and make the profit maximization in the market supply of fuzzy demands environment.

Key concepts: Supply chain, Fuzzy logic, Profit sharing, Profit maximization, Profit (economics), Credibility, Microeconomics, Game theory

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