Supply chain network efficiency evaluation considering bi-level trade-offs among components

Supply chain networks, particularly within the dynamic landscape of the food industry, face the challenge of balancing two conflicting goals: customer service and economic efficiency. While striving to ensure food security and deliver fresh, high-quality products to meet diverse customer needs, food supply chains must also minimise their total costs. This study introduces a pioneering approach by developing a hybrid network data envelopment analysis model integrated with game theory to evaluate supply chain network performance. The significance of this research lies in addressing the complexities of trade-offs at two levels: both among players and between the objectives of each player. Previous studies have primarily focused on designing performance evaluation systems that consider conflicts of interest among players while largely overlooking the conflicts among competing goals. This research not only sheds light on the multifaceted nature of performance evaluation but also offers a practical solution validated through a real-world case study. The proposed model enables executives to simultaneously assess both the overall efficiency of the network and the individual efficiency of each player in terms of customer service and economic performance. These insights support policymakers in allocating limited resources more effectively and enhancing competitiveness in the market.