Abstract: This study applies fuzzy set theory to multi-echelon inventory system. Supply chain management means co-coordinating, scheduling and controlling procurement, production, inventories and delivers of products and service of customers. Within manufacturing research, the supply chain concept grew largely out of two stage multi-echelon inventory models. The objective of this study is to modulate and simulate the behaviour of an supply chain in an uncertain environment. Numerical examples are provided and sensitivity analysis is also given to emphasize the results in crisp and fuzzy environment.