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Supply Chain Coordination through a Revenue-Sharing Contract with Two Kinds of Fuzzy Demand

Junyan Wang, Xiazhong Li, Ziping Du

Source Title: International Journal of Information Systems and Supply Chain Management (IJISSCM) 7(4)

DOI: 10.4018/ijisscm.2014100105

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Abstract

This paper studies a supply chain coordinated by a revenue-sharing contract in fuzzy environment. Two kinds of fuzzy programming models are discussed: revenue-sharing contract with fuzzy linear demand model and fuzzy iso-price-elastic demand model. Supply chain coordination in both centralized decision setting and centralized decision setting are achieved by obtaining the optimal solutions in the discussed settings.

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2. Preliminaries

Let be a nonempty set, and the power set of. For any , Liu and Liu (2002) presented a credibility measure to express the chance that fuzzy event occurs. Li and Liu (2006) proved that a set function is a credibility measure if and only if: