Risk due to insufficient retail service management considering satisfaction level for distributor and consumer

Abstract

It is essential to avoid industrial risks when one player (retailer) does not receive all of ordered products from other player (manufacturer). In such a case, several manufacturers cannot send ordered products to the distributor due to some faults in the production. If the retail management is not sufficient to serve consumers, then the whole supply chain is under risk. Further, the government has established a mandatory beneficial trading system for controlling pollution of the atmosphere for all products. In this model, the joint profit is maximized, corresponding to certain required decision variables considering sustainable development goals. A solution procedure is discussed to determine the decisions under the risk. Results are illustrated with valid numerical examples for different scenarios. The model shows that the profit is $522,649/cycle, which is obtained from the numerical experiment. Further, managerial insights and conclusions are discussed to analyze applications of the model. It is found that the risk can be reduced with the proper control of retail management such that satisfaction level of consumer is high.