The effects of green house gas costs on optimal pricing and production lotsize in an imperfect production system

Abstract

The present article deals with an imperfect production system considering costs for greenhouse gas (GHG) to determine the optimal reserve selling price, sales teams’ efforts and production lotsize. As per government guidelines, the manufacturer used to adopt green practices in supply chain management to meet the customers’ satisfaction regarding fair prices and quality of the products. In this connection, a mathematical model is formulated and analyzed considering various cost factors and interval values of the key parameters. Finally, numerical illustrations are considered to justify the proposed model.