Optimization of a production inventory model of imperfect quality items for three-layer supply chain in fuzzy environment

Abstract

PurposeGood management strives to align and corporate processes for more attention being paid to supply chain management. Firms realize that greater co-operation and improved coordination can help to manage the entire supply chain more efficiently. The imperfect quality item is one of the most important issues that affect the expected profit of green supply chain. The imprecise cost with screening process of poor quality items posed in supply chain is the subject of this study.Design/methodology/approachThe present study explores production model for imperfect items having uncertain cost parameters with three-layer supply chain encompassing supplier, manufacturer and retailer. The model is considering the impact of business tactics such as order size, production rate, production cost and appropriate times in various sectors on collaborative marketing systems. Due to imprecise cost parameters, the pentagonal fuzzy numbers are set to fuzzify the total cost and defuzzifition by using graded mean integration.FindingsThis study offers an explicit condition in uncertain environment to manage the imperfect quality item to increase the potential profit of the supply chain. The influence of changes in parameter values on the optimal inventory policy under fuzziness is provided managerial insights.Originality/valueThis model makes a significant contribution to fuzzy inference. The results of the study provide a trading strategy for the industry to avoid losses. The prescribed study can be suitable for the industries like sculpture, jewelry, pottery, etc.