Carbon emission sensitive deteriorating inventory model with trade credit under volumetric fuzzy system

Abstract

This study explores carbon emission issues over production manufacturing system with the context of joint inventory control and sustainable trade credit financing for deteriorating items in a supplier–retailer–customer model under volumetric fuzzy system. Here, the supplier offers an upstream full trade credit to the retailer and the retailer in turn, provides a downstream partial trade credit to her/his customers. Demand rate is assumed to be functionally depends upon carbon emissions, unit selling price and the length of the credit period offered by the retailer to their customers explicitly. Taking a case study, we develop a profit maximization crisp problem first then considering the unit selling price and the carbon elasticity as fuzzy numbers we formulate an equivalent fuzzy problem. After that, the fuzzy problem has been defuzzified with the help of general fuzzy system and the new volumetric fuzzy system under two different scenarios namely with and without carbon emissions also. The aim of this study is to develop a best methodology over fuzzy system on trade credit financing problem so as to optimize the average profit function over the optimum design variables the credit period, the order quantity, the cycle time, the partial shortage time and minimum carbon emissions, respectively. Finally, numerical illustrations and its comparative study with the existing methods, sensitivity analysis and graphical illustrations are performed to justify the novelty of the proposed approach.