Three‐stage supply chain coordination under fuzzy random demand and production rate with imperfect production process

This paper considers three‐stage supply chain (SC) coordination and focuses on the fuzziness as well as randomness aspect of demand and production rate. It is assumed that the production process is not perfect and deterioration takes place when it is physically present in stock. To obtain the optimal solution, graded mean integration method is employed to defuzzify the estimate of total cost of SC. Through numerical example, it is shown that the integrated policy results in an impressive cost reduction when it is compared with the independent decisions made by the producer, the distributor and the retailer. At the end, sensitivity analysis is performed with respect to different parameters.