Every industrial sector emits carbon emissions during production, which is always a major concern for environmental practitioners. To resolve this, innovative and smart ways are required that are not only cost-effective but also environmentally savvy. Moreover, the production processes are also prone to various imperfections, and thus the production of defectives is quite pragmatic. The handling of such defective products varies from industry to industry and type of products. The present study constructs an inventory model to handle the defective products via a proficient rework strategy that makes the product fit to be sold at the primary price. Here, the demand for the product is assumed to be dependent on the selling price and advertisements. The model also considers the energy usage during the production and the cost of carbon emissions while optimizing the production batch size and selling price. Optimality is proved graphically by using the software Mathematica 11.3.0. A comprehensive sensitivity analysis for all the parameters is performed to impart managerial insights and robustness to the model.

The present paper considers the effect of imperfect quality items on a production system which further undergoes inspection and rework. The demand of the product is price reliant. Two situations to handle the imperfect items are analyzed: selling them at a reduced price and reworking them. The demand is assumed to meet with perfect products in either case. Further, the study incorporates the carbon-emissions borne during production of goods and their holding in the inventory system. The model aims at maximizing the profit function by jointly optimizing mark-up price and production quantity. To demonstrate model characteristics, numerical and sensitivity analysis are also presented.