Abstract
Recently, global supply chain management has an important role for globalization of marketplaces and global production in order to maximize the total profit. The noncooperative game between the supplier and the retailer is generally formulated as a bilevel programming problem. The bilevel programming problem has the nonlinear objective function with demand uncertainty. However, the nonlinear function has some difficulties to be solved and the study on the algorithm to solve the nonlinear bilevel programming has not been addressed so far. In this paper, we propose the algorithm to derive Stackelberg equilibrium in order to solve the nonlinear bilevel programming problem in which the supplier and the retailer make decisions respectively with the demand uncertainty.
