Abstract: In this paper,the supply chain system with one manufacturer and multi-retailers is constructed under demand uncertainty.The stochastic optimization models with retailer competition are established under the consideration of products substitutability.Using robust optimization method,the absolute robust problems,robust deviation problems and relative robust problems are studied under demand uncertainty, respectively.Finally,these three optimal solutions are compared with different product substitutability through numerical examples.

Key words: supply chain, robust optimization, newsvendor model, uncertainty, Stackelberg game