Compromised supply chain planning under dominant systems with inventory policies and cost uncertainty

Abstract

In practice, companies with dominant power influence partner operations for their benefits. This paper proposes the supply chain (SC) planning models that determine the optimal sale, pricing, production, and inventory plans of each SC member based on the dominant policy. The theoretical contributions of this paper include a development of linear mathematical functions and explicitly considering the inventory turnover as one of the business performance measures in addition to profit and revenue. The fuzzy multi-objective linear programming models (FMOLP) under dominant systems are developed. A case study in plastic fashion accessory industry in Thailand is performed. The performance measures are translated into satisfaction levels and plotted in a radar chart with an area of possibility, which clearly shows the sensitivity degree of uncertainty. Practical contribution is that this paper recommends suitable pricing and inventory plans based on the dominant policy. [Submitted: 15 August 2018; Accepted: 18 March 2019]