A fuzzy pricing model for a green competitive closed-loop supply chain network design in the presence of disruptions

Abstract This paper presents a fuzzy bi-objective bi-level model with a price-dependent demand for the network design of a closed-loop supply chain in the presences of random disruptions at suppliers. The environmental issues resulted in considering two strategies, namely: adding a reverse flow to the supply chain and controlling the amount of CO2 emissions. In this model, the uncertain demand is assumed as a function of price offered to the customers by the supply chain and its rival. The proposed model determines outsourcing strategies, pricing decisions that maximize the total profit in such a competitive situation and minimizes the amount of CO2 emissions by production processes. A hybrid approach combining Karush–Kuhn–Tucker (K-K-T) conditions and possibilistic method was developed to solve the fuzzy bi-level model. Then the e-constraint method is used to convert the integrated bi-objective model to a single-objective one. Finally, important managerial insights are obtained from an empirical case study of a filter industry.

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