Skip to main content
Log in

Belief degree of optimal models for uncertain single-period supply chain problem

  • Methodologies and Application
  • Published:
Soft Computing Aims and scope Submit manuscript

Abstract

Mathematical model formulations for single-period supply chain problem depend on how to describe the demand. This paper applies uncertainty theory, which is a branch of axiomatic mathematics for dealing with human uncertainty, to model demand distribution. Uncertain decentralized management model and uncertain centralized management model are developed. Unique closed-form solutions for the two models are derived. The belief degree of “order quantity being less than the supply chain optimal order quantity” is proposed and the lower bound of the belief degree is obtained and carefully analyzed. Finally, some examples are presented to illustrate our method.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Araneda-Fuentes C, Lustosa LJ, Minner S (2015) A contract for coordinating capacity decisions in a business-to-business (B2B) supply chain. Int J Prod Econ 165:158–171

    Article  Google Scholar 

  • Awudu I, Zhang J (2013) Stochastic production planning for a biofuel supply chain under demand and price uncertainties. Appl Energy 103:189–196

    Article  Google Scholar 

  • Chen TH (2011) Coordinating the ordering and advertising policies for a single-period commodity in a two-level supply chain. Comput Ind Eng 61(4):1268–1274

    Article  Google Scholar 

  • Chen XW (2011) American option pricing formula for uncertain financial market. Int J Oper Res 8(2):32–37

    MathSciNet  Google Scholar 

  • Ding SB (2013) Uncertain multi-product newsboy problem with chance constraint. Appl Math Comput 223:139–146

    MathSciNet  MATH  Google Scholar 

  • Ding SB (2014) Uncertain random newsboy problem. J Intell Fuzzy Syst 26(1):483–490

    MathSciNet  MATH  Google Scholar 

  • Dominey MJG, Hill RM (2004) Performance of approximations for compound Poisson distributed demand in the newsboy problem. Int J Prod Econ 92(2):145–155

    Article  Google Scholar 

  • Edgeworth FY (1888) The mathematical theory of banking. J Roy Stat Soc 51(1):113–127

    Google Scholar 

  • Ehrhardt R, Taube L (1987) An inventory model with random replenishment quantity. Int J Prod Res 25(12):1795–1803

    MATH  Google Scholar 

  • Gallego G, Moon I (1993) The distribution free newsboy problem: review and extensions. J Oper Res Soc 44(8):825–834

    Article  MATH  Google Scholar 

  • Gao XL, Gao Y (2013) Connectedness index of uncertain graphs. Int J Uncertain Fuzziness Knowl Based Syst 21(1):127–137

    Article  MathSciNet  MATH  Google Scholar 

  • Gao Y, Wen ML, Ding SB (2013) (\(s\), \(S\)) policy for uncertain single period inventory problem. Int J Uncertain Fuzziness Knowl Based Syst 21(6):945–953

    Article  MathSciNet  MATH  Google Scholar 

  • Gao Y, Yang LX, Li SK, Kar S (2015) On distribution function of the diameter in uncertain graph. Inf Sci 296:61–74

    Article  MathSciNet  MATH  Google Scholar 

  • Hadley G, Whitin TM (1963) Analysis of inventory systems. Prentice-Hall, New Jersey

    MATH  Google Scholar 

  • Hill RM (1997) Applying Bayesian methodology with a uniform prior to the single period inventory model. Eur J Oper Res 98(3):555–562

    Article  MATH  Google Scholar 

  • Hua ZS, Li SJ (2008) Impacts of demand uncertainty on retailers dominance and manufacturer-retailer supply chain cooperation. Omega Int J Manag Sci 36(5):697–714

    Article  Google Scholar 

  • Hua ZS, Li SJ, Liang L (2006) Impact of demand uncertainty on supply chain cooperation of single-period products. Int J Prod Econ 100(2):268–284

    Article  Google Scholar 

  • Huang KL, Kuo CW, Lu ML (2014) Wholesale price rebate vs. capacity expansion: the optimal strategy for seasonal products in a supply chain. Eur J Oper Res 234(1):77–85

    Article  MathSciNet  MATH  Google Scholar 

  • Kabak IW, Schiff AI (1978) Inventory models and management objectives. Sloan Manag Rev 19(2):53–59

    Google Scholar 

  • Kalpana P, Kaur A (2011) Optimal ordering decisions and revenue sharing in a single period split order supply chain. Technol Prod Oper 2(2):61–79

    Article  Google Scholar 

  • Lariviere MA, Porteus EL (2001) Selling to the newsvendor: an analysis of price-only contracts. Manuf Serv Oper Manag 3(4):293–305

    Article  Google Scholar 

  • Lau HS (1980) Some extensions of Ismail-Louderback’s stochastic CVP model under optimizing and satisfying criteria. Decis Sci 11(3):557–561

    Article  Google Scholar 

  • Lin J, Ng TS (2011) Robust multi-market newsvendor models with interval demand data. Eur J Oper Res 212(2):361–373

    Article  MathSciNet  MATH  Google Scholar 

  • Liu B (2007) Uncertainty theory, 2nd edn. Springer, Berlin

    MATH  Google Scholar 

  • Liu B (2009) Some research problems in uncertainty theory. J Uncertain Syst 3(1):3–10

    Google Scholar 

  • Liu B (2010) Uncertainty theory: a branch of mathematics for modeling human uncertainty. Springer, Berlin

    Book  Google Scholar 

  • Mahoney JF, Sivazlian BD (1980) Probability of shortage for Erlang distributed demand in a \((\sigma, S)\) inventory problem. SIAM J Appl Math 38(1):156–162

    Article  MathSciNet  MATH  Google Scholar 

  • Pasternack BA (1985) Optimal pricing and return policies for perishable commodities. Mark Sci 4(2):166–176

    Article  Google Scholar 

  • Petruzzi NC, Dada M (1999) Pricing and the newsvendor problem: a review with extensions. Oper Res 47(2):183–194

    Article  MATH  Google Scholar 

  • Qin ZF (2015) Mean-variance model for portfolio optimization problem in the simultaneous presence of random and uncertain returns. Eur J Oper Res 245(2):480–488

    Article  MathSciNet  MATH  Google Scholar 

  • Qin ZF, Kar S (2013) Single-period inventory problem under uncertain environment. Appl Math Comput 219(18):9630–9638

    MathSciNet  MATH  Google Scholar 

  • Qin Y, Wang R, Vakharia AJ, Chen Y, Seref MMH (2011) The newsvendor problem: review and directions for future research. Eur J Oper Res 213(2):361–374

    Article  MathSciNet  MATH  Google Scholar 

  • Scarf HE (1958) A min-max solution of an inventory problem. In: Arrow KJ, Karlin S, Scarf HE (eds) Studies in the mathematical theory of inventory and production. Stanford University Press, Stanford, pp 201–209

    Google Scholar 

  • Tadikamalla PR (1978) Applications of the Weibull distributions in inventory control. J Oper Res Soc 29(1):77–83

    Article  MathSciNet  MATH  Google Scholar 

  • Tadikamalla PR (1979) The lognormal approximation to the lead time demand in inventory control. Omega Int J Manag Sci 7(6):553–556

    Article  Google Scholar 

  • Vairaktarakis GL (2000) Robust multi-item newsboy models with a budget constraint. Int J Prod Econ 66(3):213–226

    Article  Google Scholar 

  • Wang ZF, Qin S Kar (2015) A novel single-period inventory problem with uncertain random demand and its application. Appl Math Comput 269:133–145

    MathSciNet  Google Scholar 

  • Wang D, Qin ZF (2016) Multi-product newsvendor problem with hybrid demand and its applications to ordering pharmaceutical reference standard materials. Int J Gen Syst 45(3):271–285

    Article  MathSciNet  MATH  Google Scholar 

  • Yang XF, Gao JW (2013) Uncertain differential games with application to capitalism. J Uncertain Anal Appl 1:17

    Article  Google Scholar 

  • Yao K, Ralescu DA (2013) Age replacement policy in uncertain environment. Iran J Fuzzy Syst 10(2):29–39

    MathSciNet  MATH  Google Scholar 

  • Yu J, Sarker BR, Duan Q, Wu B (2012) Single-manufacturer, multi-retailer consignment policy for retailers generalized demand distributions. J Oper Res Soc 63(12):1708–1719

    Article  Google Scholar 

  • Zhu YG (2010) Uncertain optimal control with application to a portfolio selection model. Cybern Syst 41(7):535–547

    Article  MATH  Google Scholar 

Download references

Acknowledgements

This work was supported by the National Natural Science Foundation of China (Grant No. U1404701), the Scholarship Programm of China Scholarship Council (Grant No. 201509895007), the Soft Science Research Program of Henan Province (Grant No. 152400410447), the Science Foundation of Henan University of Technology (Grant No. 2017RCJH11) and the Key Research Base of Humanities and Social Sciences for Universities in Henan Province.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sibo Ding.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Human and animal rights

This article does not contain any studies with human participants or animals performed by any of the authors.

Additional information

Communicated by V. Loia.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ding, S. Belief degree of optimal models for uncertain single-period supply chain problem. Soft Comput 22, 5879–5887 (2018). https://doi.org/10.1007/s00500-017-2736-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00500-017-2736-y

Keywords

Navigation