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 of 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 DataEnvelopment 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.