Effects of emission reduction and rework policy in a production system of green products: An interval valued optimal control theoretic approach

Abstract

Over the last few decades, the implementation of emission regulation by the government due to the impact of emissions from the industrial sector on the environment has included a rough demotivation among the small and moderate manufacturing industries. In the recent market situation, it is observed that, consumers much prefer to purchase eco-friendly products. Further, in the highly imprecise competitive market, it is rather a complicated task for a competent authority/operator of every manufacturing company to make an appropriate decision regarding marketing policy of the firm. Taking these three factors into account, this work aims to formulate the model of a production system that can benefit such manufacturers who are dealing with these three issues. This model is developed using interval modelling technique, and it is solved by using optimal control in interval uncertainty. Regarding emission tax estimation, two distinct cases appear to the manufacturer, which are explained separately. After the numerical analysis of the proposed model, it contemporarily observed that for a small/moderate manufacturing sector, adoption of emission reduction technology appears to be more beneficiary rather than paying emission tax free of reduction technology. Further, greenness index for the manufactured items imposes considerably-sensitive impact on the revenue of the system. Therefore the major contribution of the model is to investigate an emergent business policy for a manufacturing firm of green products under emission taxation regulation so that it may influence small and moderate manufacturers to set up their best-found marketing policies.