Supply Chain Coordination Based on Buyback Contract under the Imperfect Product Quality and Fuzzy Demand Environments

Abstract

The coordination of two-echelons supply chain by buyback contract under the imperfect product quality and fuzzy demand environment is investigated in this paper. The mathematical models are built based on credibility theory, and the optimal parameters of buyback contract are obtained. In addition, the influence of the imperfect product rate on the parameters of buyback contract is analyzed. Finally, a numerical example is presented to demonstrate the solving processes of the models and the different effects of imperfect product rate on parameters of buyback contract and the fuzzy expected profit value of all members in supply chain.