Zographou: World Scientific and Engineering Academy and Society
This paper studies the effect of the returns policy on channel coordination and Pareto efficiency in a two-echelon supply chain with fuzzy demand. As in the traditional probabilistic analysis, we prove that the profits for the whole supply chain, the manufacturer and the retailer in the coordination situation are larger than the corresponding one in the non- coordination situation. Not like the probabilistic analysis, the optimal quantity is not unique in fuzzy demand. The goal of channel coordination and Pareto efficiency can be achieved by the returns policy if the optimal quantity is smaller than
the most possible value of fuzzy demand; otherwise, it may not be achieved.
WSEAS Transactions On Information Science And Applications 12(8), pp.464-476