Price Competition Strategy with a Common Retailer for a Fuzzy Supply Chain

Abstract

This paper considers supply chain models with two competitive manufacturers acting as the leaders and a retailer acting as follower under a fuzzy decision environment. The parameters of demand function and manufacturing cost are treated as fuzzy variables. Two manufacturers are assumed to pursue Cournot competitive behavior and the optimum policy of the expected value and chance-constrained programming models are derived. Finally, a numerical example is provided to illustrate the results of proposed models. It is shown that in fuzzy models, the confidence level of the profits for supply chain members affects the final optimal solutions.