<p>The aim of the study proposes a hybrid delayed differentiation multiproduct economic production quantity (EPQ) model to enhance efficiency and sustainability in the textile industry. The framework integrates delayed differentiation with zero waste and effluent treatment technologies to reduce manufacturing lead time, minimize wastewater, and prevent scrap cloth disposal. A three-phase production scheme is designed, where the standard components are fabricated initially, followed by differentiation into semi-finished and final products under a multi-shipment policy using three machines. To manage machine breakdowns, partial subcontracting of standard components is allowed in the first phase, while subsequent stages resume production after repairs, thereby reducing replenishment cycle time and overall system costs. A numerical example demonstrates the model’s practical applicability and examines the influence of system parameters on cost, efficiency and sustainability. The novelty of this research lies in integrating delayed differentiation, partial subcontracting, effluent treatment, and zero-waste technology within a multi-product EPQ model for textile manufacturing systems. The model also incorporates Triangular Fuzzy Numbers to address cost uncertainty and support better decision-making. Comparative results show that the proposed approach outperforms the conventional three-machine, three-stage EPQ system in terms of total cost savings and reduced environmental impact. Moreover, the integration of delayed differentiation and zero-waste technology reduces material waste and improves resource utilization, highlighting the economic and environmental advantages of the proposed framework.</p>