Supply Chain Coordination Research under a Fuzzy Decision Environment

In a two-stage supply chain composed of a supplier and a retailer, the supply chain models under a fuzzy environment are researched. The parameters of market demand function, the costs of the supplier and retailer are treated as trapezoidal fuzzy numbers. The decision processes are analyzed under the decentralized and centralized decision, and the decision model with revenue sharing contract is also built by the method of fuzzy cut sets theory. It is shown that in fuzzy decision environment, the double marginalization effect is still existed in supply chain system; the profits of members can be coordinated by revenue sharing contract. Finally, a numerical is given to illustrate the models and the solution process.