Product Pricing in Two-Echelon Supply Chain Using Game Theory in Intuitionistic Fuzzy Environment
By applying fuzzy set theory in game theory, players’ strategies are determined by fuzzy variables with a definite membership function, where the degree of non-membership is only stated by supplement of degree of membership, while determining the value of uncertain parameters of decisions may be associated with a hesitation degree. Therefore, in this paper, intuitionistic fuzzy variables are used to better describe vague and imprecise information, and also to deal with uncertainty and ambiguity in product pricing process. To provide the proposed model, a two-echelon supply chain with one manufacturer and one retailer is considered. For designing the proposed pricing game, we have considered the structure of two-level programming in a Stackelberg game form. Finally, the structural validation and the effectiveness of proposed model is shown in product pricing process using a numerical example.
Journal of Industrial Management Studies, Volume:14 Issue:43, 2017
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