Integrated Supply Chain Management Under Flexible Production System and Fuzzy Environment with Consideration of Carbon Emission and Energy Cost

This study aims to develop a two echelon supply chain model with single vendor delivering single product to single buyer. In order to meet the uncertain demand of buyer, flexible rate of the production of vendor is considered. Due to the flexible production rate, imperfect items are produced and hence there is a reworking cost to make them perfect. Furthermore, the varying production rate can affect the overall carbon emission amount and energy utilization; therefore the carbon emissions and energy utilization costs are also considered in order to make production system clean. Vendor might want to invest some amount to reduce its overall setup cost and hence this model considers the investment cost for setup cost reduction. Two models, centralized and decentralized, are presented and their algorithmic approach is proposed to get the optimal solutions. A numerical example is presented at the end to provide better insights into the developed solution procedure.