Title: A green supply chain production inventory model with uncertain holding cost

Authors: Debnarayan Khatua; Gourisankar Roymahapatra; Kalipada Maity

Addresses: Department of Basic Science and Humanities, Global Institute of Science and Technology, Haldia, Purba Medinipur – 721657, West Bengal, India ' Department Applied Sciences, Haldia Institute of Technology, ICARE Complex, Haldia, Purba Medinipur – 721657, West Bengal, India ' Department of Mathematics, Mugberia Gangadhar Mahavidyalaya, Purba Medinipur – 721425, West Bengal, India

Abstract: A green supply chain (GrSC) model with two plants facilities is formulated under uncertain environment. At first suppliers receive the deteriorating items in a lot and supplies the fresh units to manufacturer for production. Manufacturer has two plants: plant-1 and plant-2. Manufacturer purchases these fresh raw materials at a constant rate from supplier to manufacture the main product in plant-1. Retailer-I has purchased this product from manufacturer of plant-1 to sale it to the customers. The residue units of plant-1 has transferred to plant-2 with constant rate to manufacture another usable by-product. Retailer-II then purchases usable by-product and sales to the customers. Ideal costs of suppliers, manufacturer and retailers have been taken into account. Due to complexity of market situation, all inventory holding costs are considered as uncertain variables and these are reduced to crisp ones using uncertain theory. Supply rate, production rate and by-production rates are assumed as decision variables. Integrated model has been developed and solved analytically in crisp and uncertain environments to find the optimum value of the decision variables. Finally corresponding individual profits are calculated through numerical and graphical methods.

Keywords: green supply chains; GSC; two plant facilities; supply rate; production rate; by-product rates; uncertainty; green SCM; GSCM; supply chain management; production inventory modelling; inventory management; uncertain holding costs; by-products.

DOI: 10.1504/IJPMB.2017.084905

International Journal of Process Management and Benchmarking, 2017 Vol.7 No.3, pp.277 - 304

Received: 27 May 2015
Accepted: 25 Jul 2015
Published online: 09 Jul 2017 *

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