Closed-loop supply chain coordination mechanism with fuzzy demand

In a two-stage closed-loop supply chain composed of one manufacture and one retailer,the supply chain coordination mechanism in fuzzy demand environment is researched.The market demands are regarded as fuzzy variable.Based on fuzzy cut sets theory,the models of centralized decision and revenue-expense sharing contract are constructed,and their optimal policies are also proposed.Taken the triangular fuzzy numbers as an example,a numerical is given to illustrate and validate the models and conclusions.It is shown that the retailer's optimal order quantity is fluctuated at the center of the fuzzy demand and is increased with the raise of the retail price.The coordination of members can be achieved in revenue-expense sharing contract with fuzzy demand.