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A Three-Level Supply Chain Model with Necessity Measure
Abstract
In this chapter, a vertical information sharing in terms of inventory replenishment / requirement from the customer(s)? retailer(s)? producer? supplier(s) has been done. The constant imprecise fuzzy demands of the goods are made to the retailers by the customers. These goods are produced (along with defectiveness, which decreases due to learning effects) from the raw materials in the producer's production center with a constant production rate (to be determined). Producer stores these raw materials in a warehouse by purchasing these from a supplier and the suppliers collect these raw materials from open markets at a constant collection rate (to be determined). The whole system is considered in a finite time horizon with fuzzy demand for finished products and fuzzy inventory costs. Here shortages are allowed and fully backlogged. The fuzzy chance constraints on the available space of the producer and transportation costs for both producer, retailers are defuzzified using necessity approach. Results indicate the efficiency of proposed approach in performance measurement. This paper attempts to provide the reader a complete picture of supply chain management through a systematic literature review.
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