Supply Chain Modeling using Fuzzy Sets and Possibility Theory in an Uncertain Environment

Managing a supply chain effectively is very difficult because various sources of uncertainty and complex interrelationships at various levels between various entities in the supply chain. Fuzzy set theory is used to model supply chain in an uncertain environment. This paper develops a new fuzzy supply chain model based on possibility theory to evaluate entire supply chain performances. The proposed model allows decision makers to express their risk attitudes and to analyze the trade-off between customer service level and inventory investment in the supply chain and to select suitable supply chain inventory strategies. An illustrative example validates the concept of this paper