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Chinese Journal of Management Science ›› 2007, Vol. 15 ›› Issue (3): 47-55.

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On Response Method for Buyback Contract with Fuzzy Random Demand Updating

ZHAO Zhi-gang1,2, LI Xiang-yang1,2, LIU Xiu-zhi3   

  1. 1. National Philosophy Social Science Innovation Base of Technology, Policy and Management, Harbin Institute of Technology, Harbin 150001, China;
    2. School of Management, Harbin Institute of Technology, Harbin 150001, China;
    3. The School of Business Administration, Dongbei University of Finance & Economics, Dalian 116025, China
  • Received:2006-05-19 Revised:2007-04-20 Online:2007-06-30 Published:2007-06-30

Abstract: To the situation that the demand information was updated to afuzzy random variable,profitability models of supply chain were constructed for different decision options.Pessimistic,optimistic and risk neutral decision criteria were proposed further,for the decision of supply chain.To the supply chain coordinating by buyback contract,formation method of feasible set for buyback contracts adjusted parameters was put forward,according to the analysis of profitability of the retailer with different choices.The research shows that,to coordinate the supply chain,buyback contract has to make real time response to information updating.With the adjusted parameters selected from the feasible set,the buyback contract could reasonably distribute the difference of system profit after demand information updating and before,which demonstrated the supply chain management idea of sharing gain and risk simultaneously.Simulated case study illustrates the responding steps in detail and shows the effectiveness of the response method.

Key words: aupply chain coordination, buyback contract, fuzzy random demand updating, response method

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