Interval valued inventory model for deterioration, carbon emissions and selling price dependent demand considering buy now and pay later facility

Abstract

Uncertainty refers to a lack of precise knowledge or information about a particular event, situation, or outcome. It is an inherent characteristic of many real-world phenomena and is often associated with the presence of risk or ambiguity. Uncertainty can arise due to various factors, such as incomplete information, unpredictability, complexity, or variability of a system or process. In many cases, uncertainty can lead to difficulties in decision-making and pose challenges in planning, forecasting, and managing risks. There are different types of uncertainty, including epistemic uncertainty, which arises from the inherent randomness or variability of a system or process. This study encompasses the inclusion of all inventory parameters as uncertainty parameters, which are expressed in the form of intervals. Furthermore, demand for the product is taken into account in interval form. The conversion of the differential equation into an interval differential equation is carried out in order to account for the variability in demand within a certain interval. The utilisation of the centre-radius technique leads to the derivation of the related optimisation problem under a ‘buy now, pay later’ (BNPL) payment scheme. In order to demonstrate the concept, a numerical case is selected and solved with the MATHEMATICA software and interval order relations. In the end, a comprehensive sensitivity analysis has been conducted to derive insightful conclusions pertaining to this study.