Price competition of manufacturers in supply chain under a fuzzy decision environment

This paper considers supply chain models with two competitive manufacturers and a common retailer that sells products of both manufacturers under a fuzzy decision environment. The parameters of demand function and manufacturing cost are treated as fuzzy variables. Two manufacturers and one retailer are assumed to pursue three different power balance scenarios: Manufacturer-Stackelberg, Retailer-Stackelberg and Vertical-Nash games. For each case, the optimal solutions of the expected value and two chance-constrained programming models are derived. Finally, numerical examples are provided to illustrate the results of proposed models. It is shown that in fuzzy models, the different scenarios affect the optimal pricing strategies, and the confidence level of the profits for supply chain members affects the optimal solutions.