Three levels of sustainable production inventory model for defective and deteriorating items with rework under marketplace selling price.

The intention of the article is to present an imperfect production process inventory system for the decaying items, where the demand rate is depending on advertising cost and price. In this research, an industrial manager produces products in a determined (m) imperfect replenishment cycles and also in each replenishment cycle, the manufacturer manufactures items in three imperfect production cycles and one rework setup, (M/P₃/R₁) inventory system. Rework is one of the important issues in reverse logistics and green supply chain, since it reduces waste, environmental harms and also the overall inventory cost significantly. Here shortages are considered under complete backlogging strategy. The major objective is to establish the optimal advertising cost, optimal cycle time, optimal lot size quantity and optimum selling price with the intend of minimizing the total inventory cost. A numerical example and a sensitivity analysis are recognized to authenticate the theoretical results, and managerial insights for business managers are provided. [ABSTRACT FROM AUTHOR]