Abstract

This paper considers a two-echelon supply chain including one manufacturer and one retailer will be considered. In the supply chain, the retailer plays the dominant role. In consideration of various factors of uncertainty in the real economy, the market demand function, the manufacturer’s manufacturing cost, and retailer’s operating costs are considered as fuzzy variables. Stackelberg model is adopted to solve the game problem between retailers and manufacturers. The expected value model and the chance constrained model are introduced to solve the optimal decision problem. The optimal wholesale price and marginal profit per unit of each model that are at equilibrium are provided to obtain the maximum profit of retailers and manufacturers. Finally, a numerical example illustrates the effectiveness of the supply chain game model.

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