Design of Modern Supply Chain Networks Using Fuzzy Bargaining Game and Data Envelopment Analysis

This article proposes a novel methodology for multistage, multiproduct, multi-item, and closed-loop Supply Chain Network (SCN) design under uncertainty. The method considers that multiple products are manufactured by the SCN, each composed by multiple items, and that some of the sold products may require repair, refurbishing, or remanufacturing activities. We solve the two main decisions that take place in the medium-/short-term planning horizon, namely partners' selection and allocation of the received orders among them. The partners' selection problem is solved by a cross-efficiency fuzzy Data Envelopment Analysis technique, which allows evaluating the efficiency of each SCN member and ranking them against multiple conflicting objectives under uncertain data on their performance. Then, according to the estimated customers' demand, the order allocation problem is solved by a fuzzy bargaining game problem, where each SCN actor behaves to simultaneously maximize both its own profit and the service level of the overall SCN in terms of efficiency, costs, and lead time. An illustrative example from the literature is finally presented. Note to Practitioners-We present a decision tool to address the optimal design, performance evaluation, and continuous improvement of modern cooperative SCNs. We propose an effective method to jointly solve the members' selection and the orders' allocation, considering the complex structure of modern SCNs, the multiobjective nature of the problems, and the uncertainty characterizing economic markets. Competition within SCNs stages and cooperation along the chain are considered, with the aim to improve both financial and environmental sustainability, while ensuring the highest service levels to customers.