Three-stage supply chain coordination under fuzzy random demand and production rate with imperfect production process

Dharmendra Yadav, S.R. Singh and Rachna Kumari

International Journal of Operational Research, 2013, vol. 16, issue 4, 421-447

Abstract: This paper considers three-stage supply chain (SC) coordination and focuses on the fuzziness as well as randomness aspect of demand and production rate. It is assumed that the production process is not perfect and deterioration takes place when it is physically present in stock. To obtain the optimal solution, graded mean integration method is employed to defuzzify the estimate of total cost of SC. Through numerical example, it is shown that the integrated policy results in an impressive cost reduction when it is compared with the independent decisions made by the producer, the distributor and the retailer. At the end, sensitivity analysis is performed with respect to different parameters.

Keywords: fuzzy random demand; fuzzy random production rate; graded mean integration value; supply chain coordination; supply chain management; SCM; imperfect production processes; sensitivity analysis. (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:16:y:2013:i:4:p:421-447

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