Inventory Strategy of Dual Channel Supply Chain of Channe lPreference under Fuzzy Demand Circumstance

Abstract

This paper takes fuzzy demand and consumers’ channel preference into serious consideration so as to construct the decision-making model of dual channel supply chain inventory under the circumstance of dual channel supply chain system made up of one manufacturer and retailers for the sales of a single product. It carries out the optimum analysis, obtains the optimal inventory strategy of manufacturer and retailer and further analyzes the inventory decision making of both sides in the supply chain and variation of fuzzy expected profit with channel sales price, fuzzy demand and consumers’ online channel preference rate. The result shows that the selling price of dual channel has a definite impact on the inventory decision making of supply chain and fuzzy expected profit. With great fuzzy demand, manufacturers and retailers tend to increase inventory. Fuzzy expected profit of both sides on the supply chain and total fuzzy expected profit of the supply chain will fall down, and the fuzzy expected profits of the retailers decrease significantly. The increase of consumers’ online channel preference rate will lead to the increase of manufacturer's inventory and the decrease of retailer's inventory. The total inventory of supply chain will increase slightly. At the same time, the manufacturer's fuzzy expected profit will increase while the fuzzy expected profit of retailer and sully chain will decrease.