A sustainable fuzzy economic order quantity inventory model with linear demand and exponential unit profit function in circular economy

Circular economy is the one of the most targeted development in which remanufacturing, recycle and reuse the materials that creates job with minimised resource used. Application of circular economy is increasing day by day for economic growth and healthy business. Government encourages the use of circular economy instead of linear economy by providing subsidies through regulations and taxes. In this paper, a fuzzy economic order quantity model in circular economy is presented. Since some parameters are uncertain in nature, they are considered as triangular fuzzy number. Defuzzification is done by using graded mean integration representation method (GMIR). In this paper, ordering quantity and circularity index level are decision variables. The concavity of the average profit function is shown theoretically. The optimality of the parameters is determined analytically. It is further endorsed by numerical example with an intension to validate the proposed model. The CE gives a remarkable gain in profit, which is the focus of any industry that is concerned about environmental conservation. The financial advantage of the company is given due weight age in this model. For this, sensitivity analysis is independently carried out by deploying circular economy in inventory modelling.