Optimal Decisions for a Fuzzy Two-Echelon Supply Chain

This paper discusses the optimal decisions of pricing and selling effort for a two-echelon supply chain with uncertain consumer demands, manufacturing costs, and selling costs. In order to maximize the α-optimistic value of the profits, based on different market structures, one centralized decision...

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Main Authors: Qingfeng Song, Kai Shi, Sheng Lin, Guangping Xu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2014/705839
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author Qingfeng Song
Kai Shi
Sheng Lin
Guangping Xu
author_facet Qingfeng Song
Kai Shi
Sheng Lin
Guangping Xu
author_sort Qingfeng Song
collection DOAJ
description This paper discusses the optimal decisions of pricing and selling effort for a two-echelon supply chain with uncertain consumer demands, manufacturing costs, and selling costs. In order to maximize the α-optimistic value of the profits, based on different market structures, one centralized decision model and three decentralized decision models are developed, and the corresponding analytical equilibrium solutions are obtained using the game-theoretical approach. The results illustrate that no matter what decision case is, the optimal retail and wholesale prices in the case of considering selling effort are, respectively, larger than those of no selling effort; the optimal profits of the manufacturer, the retailer, and the whole supply chain system in the case of considering selling effort are, respectively, larger than those of no selling effort except for the profit of the retailer in the case that the manufacturer plays the leader’s role. Finally, one numerical example is presented, which illustrates the effectiveness of the proposed models.
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institution Kabale University
issn 1026-0226
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language English
publishDate 2014-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-a7665f8478e44b6eadbb8a4e26e3a8602025-02-03T05:51:49ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/705839705839Optimal Decisions for a Fuzzy Two-Echelon Supply ChainQingfeng Song0Kai Shi1Sheng Lin2Guangping Xu3School of Science, Tianjin Chengjian University, Tianjin 300384, ChinaSchool of Computer Science and Communication Engineering, Tianjin University of Technology, Tianjin 300384, ChinaSchool of Computer Science and Communication Engineering, Tianjin University of Technology, Tianjin 300384, ChinaSchool of Computer Science and Communication Engineering, Tianjin University of Technology, Tianjin 300384, ChinaThis paper discusses the optimal decisions of pricing and selling effort for a two-echelon supply chain with uncertain consumer demands, manufacturing costs, and selling costs. In order to maximize the α-optimistic value of the profits, based on different market structures, one centralized decision model and three decentralized decision models are developed, and the corresponding analytical equilibrium solutions are obtained using the game-theoretical approach. The results illustrate that no matter what decision case is, the optimal retail and wholesale prices in the case of considering selling effort are, respectively, larger than those of no selling effort; the optimal profits of the manufacturer, the retailer, and the whole supply chain system in the case of considering selling effort are, respectively, larger than those of no selling effort except for the profit of the retailer in the case that the manufacturer plays the leader’s role. Finally, one numerical example is presented, which illustrates the effectiveness of the proposed models.http://dx.doi.org/10.1155/2014/705839
spellingShingle Qingfeng Song
Kai Shi
Sheng Lin
Guangping Xu
Optimal Decisions for a Fuzzy Two-Echelon Supply Chain
Discrete Dynamics in Nature and Society
title Optimal Decisions for a Fuzzy Two-Echelon Supply Chain
title_full Optimal Decisions for a Fuzzy Two-Echelon Supply Chain
title_fullStr Optimal Decisions for a Fuzzy Two-Echelon Supply Chain
title_full_unstemmed Optimal Decisions for a Fuzzy Two-Echelon Supply Chain
title_short Optimal Decisions for a Fuzzy Two-Echelon Supply Chain
title_sort optimal decisions for a fuzzy two echelon supply chain
url http://dx.doi.org/10.1155/2014/705839
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AT shenglin optimaldecisionsforafuzzytwoechelonsupplychain
AT guangpingxu optimaldecisionsforafuzzytwoechelonsupplychain