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Discrete Dynamics in Nature and Society
Volume 2014 (2014), Article ID 705839, 8 pages
http://dx.doi.org/10.1155/2014/705839
Research Article

Optimal Decisions for a Fuzzy Two-Echelon Supply Chain

1School of Science, Tianjin Chengjian University, Tianjin 300384, China
2School of Computer Science and Communication Engineering, Tianjin University of Technology, Tianjin 300384, China

Received 9 September 2013; Revised 14 December 2013; Accepted 31 December 2013; Published 19 February 2014

Academic Editor: M. De la Sen

Copyright © 2014 Qingfeng Song et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper discusses the optimal decisions of pricing and selling effort for a two-echelon supply chain with uncertain consumer demands, manufacturing costs, and selling costs. In order to maximize the -optimistic value of the profits, based on different market structures, one centralized decision model and three decentralized decision models are developed, and the corresponding analytical equilibrium solutions are obtained using the game-theoretical approach. The results illustrate that no matter what decision case is, the optimal retail and wholesale prices in the case of considering selling effort are, respectively, larger than those of no selling effort; the optimal profits of the manufacturer, the retailer, and the whole supply chain system in the case of considering selling effort are, respectively, larger than those of no selling effort except for the profit of the retailer in the case that the manufacturer plays the leader’s role. Finally, one numerical example is presented, which illustrates the effectiveness of the proposed models.