In today's market, supply chain players have to cooperate mutually for extra benefits, long lasting paybacks, and to control carbon emission for a clean environment. In this study, a two-echelon sustainable supply chain model with a supplier-retailer scenario is considered to investigate the overlooked area of growing items and reducing carbon emissions. These joint effects will benefit the firms for interim financing as well as minimize carbon emission for a clean environment. The main task for the supplier is to breed new-born animals with respect to a biologic growth pattern, then slaughters them and controls the carbon emission to maintain the sustainability. The supplier then delivers the slaughtered items to the retailer where it is used as final products to satisfy customers demand and also experienced deterioration during the inventory replenishment cycle. Carbon emission is considered due to transportation of slaughtered items to the retailer. The main goal of this paper is to analyze the model under decentralized and centralized chain structures and in the centralized case profit-sharing contract is incorporated as the cooperation tool. The model has been solved with an analytic solution approach to obtain the global optimum solution. Sensitivity analysis is carried out to investigate the impact of different input parameters. The results support the claim that centralized chain structure can provide the partners with more benefits if an appropriate coordination mechanism is applied. Moreover, it is shown that the unit purchasing cost of each echelon has a significant effect on the profit in comparison to the other cost factors. Finally the results reveal that the supplier's inventory cycle is more dependent on the growth pattern rather than external cost factors.

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The proposed study addresses a two-echelon sustainable supply chain (SC) model with a single-vendor and a single-buyer by considering the detrimental impacts of environmental pollution due to production. Moreover, an estimation function of pollution measure due to production is developed through a separate modelling. In the entire supply chain, we assume the deterioration rate increases with time and it also depends on the product’s expiration date. On the other hand, the demand for deteriorating items at the buyer’s end is assumed to be the dense fuzzy number because of learning effect. The model is developed by defining the exact profit functions for the vendor, the buyer and the entire supply chain and solved by classical method. These lead to the determination of individual optimal policies, as well as the optimal policy for the joint integrated supply chain. Fuzzifying the final objective function via dense fuzzy rule, we have employed extended ranking procedure for its defuzzification. A comparative study on numerical illustration of the proposed objective function under centralized and decentralized policies in both crisp and dense fuzzy environment has also been studied to validate the model. Finally graphical illustrations and sensitivity analysis have been made for its global justifications.

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Presently in the commercial environment, because of the high level of market globalization and rapid increase in industrialization, supply chain synchronization is playing an increasingly significant role in the proper management of the whole system including several factors at the same time. In real business world, both manufacturer and retailer accept credit to make their business position strong, as credit not only strengthens their business relationships but also increases the scale of their profits. The long period of credit may increase the demand rate but simultaneously it can also increase the credit risk. We investigate a two-layer supply chain model under dynamic demand with a manufacturer and a retailer maintaining decaying items with controllable deterioration rates under two levels of trade credit policies. For the time of trade credit granted to the retailer, the manufacturer bears opportunity costs. To promote sales and optimize sales volume, both supply chain participants give trade credit periods to downstream members and due to the credit period, both of them are facing default risk. Both members work together to invest in preservation technologies to abate the rate of degradation. The proposed models are developed for both the centralized and the decentralized scenarios. A closed form model having profit maximization problem is developed for both the centralized and the decentralized scenarios. The focus of this study is to obtain the optimal selling price, replenishment cycle time, preservation technology cost, upstream and downstream trade credit period to optimize supply chain profit. The paper’s novelty lies in introducing two level trade credit with default risk considering decaying items with controllable deterioration and price and credit sensitive customer’s demand in a dual channel supply chain inventory policy. It is found that joint supply chain model can be able to enhance the total profit of the whole supply chain. Lastly, sensitivity analysis highlights the influence of major model parameters using numerical examples.