Two-Echelon Logistic Model Based on Game Theory with Fuzzy Variable

This paper applies Game Theory Based on Two–Echelon Logistic Models for Competitive behaviors in Logistics developed by Watada et al, which proposed the optimal decision method under two-echelon situation for logistic service providers. This study used three types of game theory; Cournot, Collusion, and Stackelberg to gain the optimizing strategies of exporters in each scenario. The aim of this paper is to realize optimal decision-making under competitiveness of these logistics service providers where they perform different game behaviors for achieving optimum solutions. Due to uncertain demand in the real world, fuzzy demands were applied for game theory in the two-echelon logistic model and compared results between fuzzy and non-fuzzy case. Numerical example is presented to clearly illustrate results by using fuzzy case and using crisp number. We obtain higher profits of both a shipper and forwarders when comparing the results yielded by non-fuzzy and fuzzy approaches.