Abstract

The proposed study addresses a two-echelon sustainable supply chain (SC) model with a single-vendor and a single-buyer by considering the detrimental impacts of environmental pollution due to production. Moreover, an estimation function of pollution measure due to production is developed through a separate modelling. In the entire supply chain, we assume the deterioration rate increases with time and it also depends on the product’s expiration date. On the other hand, the demand for deteriorating items at the buyer’s end is assumed to be the dense fuzzy number because of learning effect. The model is developed by defining the exact profit functions for the vendor, the buyer and the entire supply chain and solved by classical method. These lead to the determination of individual optimal policies, as well as the optimal policy for the joint integrated supply chain. Fuzzifying the final objective function via dense fuzzy rule, we have employed extended ranking procedure for its defuzzification. A comparative study on numerical illustration of the proposed objective function under centralized and decentralized policies in both crisp and dense fuzzy environment has also been studied to validate the model. Finally graphical illustrations and sensitivity analysis have been made for its global justifications.

Highlights

  • In present global production-supply scenario, green environment sustainability is the essential key factor for the existence of any kind of enterprise

  • Goyal [1] first developed an integrated inventory model based on the economic order quantity (EOQ) model to determine the optimal joint inventory policy for a single vendor and single buyer

  • We have shown that customers/public interactions with the decision makers (DM) can change the motivation so that a catchment area over demand reaches very soon

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Summary

Introduction

In present global production-supply scenario, green environment sustainability is the essential key factor for the existence of any kind of enterprise. Inventory management studies should consider the entire supply chain membership and establish an integrated inventory model, rather than adopting a retailer‟s or manufacturer‟s explicit model. The application of the production-inventory model to manufacturers and retailers in supply chain may be discussed in the following two ways

Early-stage inventories and supply chains
Preliminary
Notations
Model formulation
Centralized policy
Formulation of Fuzzy Mathematical model
Graphical illustrations on Sensitivity Analysis
Findings
Conclusion

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