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A Manufacturer-Retailer Supply Chain with Fuzzy Consumer Demand

A Vertical Cooperative Advertising and Pricing Model

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Logistics Management

Part of the book series: Lecture Notes in Logistics ((LNLO))

Abstract

In this paper, we apply fuzzy set theory to a single-manufacturer single-retailer supply chain, where both players try to determine their optimal pricing and advertising decisions. The interaction between manufacturer and retailer is analyzed by means of a Stackelberg game. Moreover, a vertical cooperative advertising program is considered, which represents a financial agreement where the manufacturer offers to share a certain fraction of his retailer’s advertising expenditures. Even though this topic gained substantial interest in recent years’ operations research literature and studies reveal that results strongly depend on demand parameters, most analyses are limited to deterministic model formulations. Here, fuzzy set theory has the advantage that it is not only able to incorporate the uncertainty of demand parameters into analysis. Furthermore, it enables us to take into consideration the experience of decision makers, which is often not expressed numerically, but rather in vague linguistic terms.

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Author information

Authors and Affiliations

  1. TU Dresden, Fakultät Wirtschaftswissenschaften, 01062, Dresden, Germany

    Gerhard Aust

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  1. Gerhard Aust
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Correspondence to Gerhard Aust .

Editor information

Editors and Affiliations

  1. University of Applied Sciences, Bremen, Germany

    Jan Dethloff

  2. ISL - Institut für Seeverkehrswirtschaft und Logistik, Bremen, Bremen, Germany

    Hans-Dietrich Haasis

  3. Dept. of Logistics, University of Bremen, Bremen, Germany

    Herbert Kopfer

  4. University of Bremen, Bremen, Germany

    Herbert Kotzab

  5. University of Bremen, Bremen, Bremen, Germany

    Jörn Schönberger

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Aust, G. (2015). A Manufacturer-Retailer Supply Chain with Fuzzy Consumer Demand. In: Dethloff, J., Haasis, HD., Kopfer, H., Kotzab, H., Schönberger, J. (eds) Logistics Management. Lecture Notes in Logistics. Springer, Cham. https://doi.org/10.1007/978-3-319-13177-1_7

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  • DOI: https://doi.org/10.1007/978-3-319-13177-1_7

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-13176-4

  • Online ISBN: 978-3-319-13177-1

  • eBook Packages: EngineeringEngineering (R0)

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