Enhancing product quality incorporating additive manufacturing on recycled inventory system with deterioration and delayed payment

This study develops an environmentally sustainable inventory system for retailers engaged in the sale of recycled products derived from the reprocessing industry. The model integrates an investment framework in additive manufacturing technology aimed at minimizing emissions and waste during production while simultaneously enhancing product quality. The primary objective of the proposed inventory system is to elevate the quality standards of recycled products and improve overall profitability. Furthermore, the model incorporates demand-dependent reliability, pricing, and quality factors to maximize profit while satisfying customer demand. It also considers deteriorating items, potential shortages, and trade credit policies to ensure a realistic operational structure. The applicability and efficiency of the proposed approach have been demonstrated through a case study involving an existing retailer, confirming its capability to enhance profitability while promoting eco-friendly production via additive manufacturing (AM). The results indicated that the integration of AM technology led to more than 2% improvement in total profit for the inventory system. In addition, a sensitivity analysis was performed to assess the influence of key parameters on the optimal solution.