Fuzzy quantity discount optimization models of supply chain coordination based on credibility theory

Abstract

This paper characterizes market demand and production cost as fuzzy variables due to their uncertainty based on credibility theory. And proposes two kinds quantity discount optimization models of supply chain coordination: fuzzy expected value quantity discount programming model and fuzzy chance-constraint quantity discount programming model. In the end, a genetic algorithm based on fuzzy simulation is designed to solve the proposed models. © 2008 IEEE.