Involvement of carbon regulation in a smart dual-channel supply chain for customized products under uncertain environment

Sustainable development and maximizing profitability in competitive environment are two of the primary concerns of modern industry sectors. Although, reduction of carbon emission and increasing production have been conflicting each other, industries still continue balancing them to achieve their sustainable goals. Moreover, to enhance the customer satisfaction, firms are keen to manage demand uncertainty. This study focuses on two main aspects such as environmental and economic sustainability, and competition among several parties associated with the supply chain. A modified dual-channel supply chain with customization policy is used in this paper by incorporating threshold limit and unequal shifting of customers. A case study is incorporated in this article with data collected from an factory in Punjab to validate the model for reducing carbon footprints compared to other models. Moreover, a competition is shown between the retailers based on increased profitability with adoption of different strategic decisions. As meeting demand and customer satisfaction level are other important parameters, triangular fuzzy numbers are used to deal with demand uncertainty. The result reflects, that there is approximately an 80% of increase in the shifting of customers if the difference between the selling price of the core and personalized product increases beyond the threshold limit. Additionally, carbon emission, penalties are directly proportion to the production. Thus, the profit increases with the production but parameters related to carbon emission and penalties should be maintained well, otherwise, the total supply chain profit would be critically low. The case study reflects that the present model reduces approximately 50% of carbon footprint.