Stackelberg Game in a Supply Chain Led by Retailers in a Fuzzy Environment

In this paper, a two-echelon supply chain that includes one manufacturer and one retailer is considered. In this supply chain, the retailer plays the dominant role. Considering the various factors of uncertainty in a real economy, the market demand function, manufacturing costs, and retail operating costs are considered as the fuzzy variables. The Stackelberg game is adopted to solve the problem between the retailer and the manufacturer. The expected value model and the chance-constrained model are introduced to solve for the optimal decision. The optimal wholesale price and marginal profit per unit that are at equilibrium in each model are provided to determine the maximum profit for the retailer and the manufacturer. Finally, a numerical example illustrates the effectiveness of the supply chain game model.