Manufacturer's coordination mechanism for single-period supply chain problems with fuzzy demand

In this paper, we consider the coordination problem for single-period supply chain problems with fuzzy demand. An efficient coordination mechanism is designed from the manufacturer's point of view. By setting different wholesale prices for different order quantities, the manufacturer can induce the retailer to order the right quantity, and therefore realize the maximum supply chain profit. It is shown that both the manufacturer and the retailer can benefit from the coordination by choosing the sharing proportion in an appropriate interval. (C) 2009 Elsevier Ltd. All rights reserved.