A fuzzy integrated vendor-buyer inventory policy of deteriorating items under credibility measure

A collaborative ordering policy in a modern supply chain system not only minimizes the integrated joint cost but also benefits each channel member. In the replenishment policy, resource constraint in each channel member is very common. When customer demand in the supply chain is fuzzy uncertainty, these constraints and cost functions may be imprecise and vague. In this paper, we consider fuzzy market demand and develop an integrated vendor-buyer ordering policy of deteriorating item with fuzzy joint cost and fuzzy vendor's and buyer's average inventory investment constraints. Under the credibility of the vendor's and buyer's average inventory investment constraints achieving their respective given confidence level, we develop a fuzzy chance-constrained programming model to find the optimal collaborative ordering policy that can minimize joint cost at a given credibility. Fuzzy simulation, associated with differential evolution (DE) algorithm is used to find the optimal decisions. A numerical example is presented at the end of this paper.