An approach to derive strategy set in supply chain management

The supply chain (SC) uncertainties are predicted from historical data is proved to be not the best way, and an integrated approach or model to assort with the overall decision problems is lacking in current SC management region. To solve above problems, a new approach for deriving the optimal strategy sets is proposed via the principle of BCC formation introduced by Banker, Chames and Cooper with the technique of assurance region in data envelopment analysis (DEA). The proposed model reflects not only the technique efficiencies but also the scale efficiencies, which may provide much helpful information for decision-making. Applied to a simulation example, the presented approach is proved to be reasonable and well applicable.