A seller-buyer supply chain model with fixed and variable labour capacity along with advertising cost and demand (Q2664701)

Summary: In this paper, supply chain models of single seller and single buyer are proposed in crisp and fuzzy environment to maximise the profit under a manageable inventory policy. These models incorporate the advertising expenditure a part of which is shared by the seller to cooperate with the buyer to have a overall compromised gain of the entire chain. In this case shortages are not permitted so that the rate of production is always greater than or equal to the rate of demand. Keeping all these in view, cooperative and non-cooperative seller-buyer models are developed with fixed and variable labour capacity. The non-cooperative model is solved by seller-buyer Stackelberg strategy while the cooperative problem is solved for Pareto optimal solution. Numerical examples are considered to verify the model and the nonlinear problem is solved using nonlinear optimisation technique.