Pricing and retail service decisions in fuzzy uncertainty environments

This paper studies the pricing and retail service decisions of a product in a supply chain with one manufacturer and two retailers. It is assumed that the supply chain is operated in fuzzy uncertainty environments. The fuzziness is associated with the customer demands, manufacturing costs and service cost coefficients. Three different game structures are considered, i.e., Manufacturer-leader Stackelberg, Retailer-leader Stackelberg, and Vertical Nash. Expected value models are developed to determine the optimal pricing and retail service strategies. The corresponding analytical equilibrium solutions are obtained by solving the models. Finally, numerical examples are presented to illustrate the effectiveness of the theoretical results, and to gain various marketing strategies employed under different situations. (C) 2014 Elsevier Inc. All rights reserved.