Optimal policy of an interval production problem with variable demand and warranty policy via $$0\_1$$ 0 _ 1 parametrized optimization technique

In every aspect of production management, the optimal policy determination is the critical work. The aim of this study is to find the best inventory policy for a nondeterministic production model with interval-valued production rate . The demand rate is supposed to be interval-valued and it is dependent on the stock-level, selling price and warranty duration. After that, the model is theoretically defined using interval differential equations and an interval parametric technique. The model’s related average profit is calculated in parametric form and maximized using $$0\_1$$ 0 _ 1 parametrized optimization technique. Finally, two numerical examples are solved numerically using the MATHEMATICA program and sensitivity analyses are performed graphically with respect to known system parameters to validate the proposed model’s best policy. The optimal result shows that the proposed model achieves its maximum average profit for the optimum values of the selling price, the warranty period and the production period for the numerical examples considered. The numerical results reveal that the proposed model is more profitable for the second example .