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Nowadays, the environment is an important concern of industries parallel to the economy. In this direction, a joint vendor-buyer model is exhibited where the system reliability and inspection errors are discussed along with the carbon emission issue. The main goal of this model is to obtain the optimum investment, shipment size, reliability, and lead time even the inspection errors present in the system. A reliability dependent unit production cost is utilized to raise the machinery system reliability. Transportation of products uses the single-setup-multi-unequal-delivery (SSMUD) policy reduced carbon emission. The mathematical problem is solved analytically and found a quasi-closed-form solution. Total cost is minimized with the optimum level of decision variables. The globality of the decision is proved by the Hessian matrix. Results prove that the total cost is minimized even though the optimum solutions are obtained in quasi-closed-form. A numerical example is elaborated to test the validity of the model numerically and lastly clarify the comparison among SSSD, SSMD, and SSMUD policies.

A joint inventory model with reliability, carbon emission, and inspection errors in a defective production system