Journal of Advanced Computational Intelligence and Intelligent Informatics
Online ISSN : 1883-8014
Print ISSN : 1343-0130
ISSN-L : 1883-8014
Regular Papers
An Uncertain Supply Chain Problem with Sales Effort
Lengceng GaoJiayu Shen
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JOURNAL OPEN ACCESS

2018 Volume 22 Issue 7 Pages 1037-1045

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Abstract

This paper considers a two-echelon supply chain problem that includes a manufacturer and a retailer. The manufacturer plays a leading role in the supply chain and must make efforts to increase sales. Due to many uncertain factors in business, the market demand, manufacturing costs and retail operating costs are assumed to be uncertain variables. Expected and chance-constrained models are developed to address these uncertain variables. Stackelberg game is used to solve the proposed models. The equilibrium optimal wholesale price and unit margin are provided in order to determine the maximum profit. Finally, numerical examples are presented to demonstrate the effectiveness of the proposed models.

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