Coordinating supply chain contracts with fuzzy demand

Considering a two-stage supply chain consisting of one supplier and one retailer,models of centralized decision,revenue sharing contract and return contract were constructed under a fuzzy demand environment.The optimal policies of these models were presented by the ranking method of fuzzy numbers based on the fuzzy cut sets theory.Finally,a numerical example was provided to analyze the effectiveness of the proposed models.The results revealed that the retailer′s optimal order quantity fluctuated at the center of the fuzzy demand and increased with the raise of the retail price.A unique solution of the optimal wholesale price and return price existed.In addition,the coordination of members could be achieved in contracts with fuzzy demand.