A SUSTAINABLE MANUFACTURING OPTIMIZATION MODEL FOR IMPERFECT PRODUCTION UNDER CIRCULAR ECONOMY, INFLATION, AND CARBON EMISSION

Abstract

This study proposes an integrated optimization framework for a sustainable supply chain. It emphasizes circular economy practices and the convergence of carbon emissions regulation. While improving economic efficiency within the footwear industry. This study presents a waste free sustainable supply chain model with a single manufacturer and a single retailer, where the production is not completely perfect. Supply chain management and sustainable business models are closely linked in that the structure of supply networks can influence the concept of the development of the sustainable business model and vice versa. The purpose of this study is to optimize the entire supply chain while encouraging economic feasibility and environmental sustainability.The manufacturer’s process could be improved at converting resources into useful products. Hence, some faulty products are produced during production, which is a different waste. To handle this kind of waste, refurbished the quantity and sold it in the market. The machine wastes some raw material in trimming, grinding, and refining. Keeping the circular economy concept, this collected waste is recycled and reused as a raw material for manufacturing. This study offers a framework for developing a supply chain network that applies circular principles while accounting for inflation to reduce waste. It proposes a method for sustainably producing substances that involves cooperation between manufacturers and stores. The research aims to reduce overall costs through an analytical approach. The sensitivity analysis additionally examines the model’s stability, demonstrating that it is relatively stable. This study examines the use of recycled scrap as a raw material, which has a modest impact on the total production cost.