Performance Evaluation of a Two-stage Supply Chain Under Fuzzy Environment
Hülya Torun and Gülçin Canbulut
In this paper, performance evaluation of a two-stage supply chain which consists of a supplier and a retailer under uncertainty environment is examined. In the literature; many studies have been investigated on supply chain performance analysis in uncertainty environment and demand parameter is an essential data on these analyses. When there is sufficient data about demand, it is easy to construct probability distribution of demand. However, in the absence of enough historical data, it is impossible to construct the probability distribution. The demand parameter is intuitively determined and shown by a fuzzy distribution in such situations. This paper intends to find closed form solutions in order to maximize the performance of a two-stage supply chain with coordination under fuzzy environment. The coordination of the supply chain is maintained by contracts. The contracts analysed in this study are revenue sharing contract and buy back contract. Numerical examples are presented to show the validity of the proposed models and to investigate the effect of contract parameters on the total performance of the supply chain.
Keywords: Supply chain; contracts; fuzzy demand; fuzzy optimization; revenue sharing; buyback