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Revenue Sharing Contract of Supply Chain with Fuzzy Continuous Demand

Jian‐Zhang Wu

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Abstract

In a two-stage supply chain composed of a supplier and a retailer,the supply chain model in fuzzy continuous demand environment is researched.The market demand is regarded as a triangular fuzzy number.The decision processes are analyzed under the decentralized and centralized decision,and the decision model with revenue sharing contract mechanism is also built by the method of fuzzy cut sets theory with fuzzy continuous demand.It is shown that there exists a unique solution of the retailer orders;double marginalization effect still exists in supply chain system;the members of supply chain can be coordinated by revenue sharing contract in fuzzy continuous demand environment.Finally,a numerical example is given to illustrate the model and the solution process.

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What this paper is about

In a two-stage supply chain composed of a supplier and a retailer,the supply chain model in fuzzy continuous demand environment is researched.The market demand is regarded as a triangular fuzzy number.The decision processes are analyzed under the decentralized and centralized decision,and the decision model with revenue sharing contract mechanism is also built by the method of fuzzy cut sets theory with fuzzy continuous demand.It is shown that there exists a unique solution of the retailer orders;double marginalization effect still exists in supply chain system;the members of supply chain can be coordinated by revenue sharing contract in fuzzy continuous demand environment.Finally,a numerical example is given to illustrate the model and the solution process.

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Available abstract

In a two-stage supply chain composed of a supplier and a retailer,the supply chain model in fuzzy continuous demand environment is researched.The market demand is regarded as a triangular fuzzy number.The decision processes are analyzed under the decentralized and centralized decision,and the decision model with revenue sharing contract mechanism is also built by the method of fuzzy cut sets theory with fuzzy continuous demand.It is shown that there exists a unique solution of the retailer orders;double marginalization effect still exists in supply chain system;the members of supply chain can be coordinated by revenue sharing contract in fuzzy continuous demand environment.Finally,a numerical example is given to illustrate the model and the solution process.

Key concepts: Revenue sharing, Supply chain, Fuzzy logic, Supply chain management, Supply and demand, Microeconomics, Revenue, Service management

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