Optimal decision making, using interval uncertainty techniques, of a production-inventory model under warranty-linked demand and carbon tax regulations.

The concepts of generalized Hukuhara difference and interval differential equation play important role in the theory of interval uncertainty. These concepts have many applications in different branches of research, viz. optimization, information theory, inventory control and others. The goal of this work is to study an application of Hukuhara difference and interval differential equation in inventory management. In this paper, an inventory model for imperfect production process under warranty-dependent demand and carbon tax regulatory mechanism, is presented with the help of Hukuhara difference and interval differential equation. Also, using the interval arithmetic, the generalized Hukuhara difference, and the existence and uniqueness theorem of interval differential equation, the corresponding average profit function of this model is obtained. In order to maximize the average profit, a center-radius optimization technique is proposed. Some numerical examples are considered and solved by using different variant of quantum-behaved particle swarm optimization algorithms. [ABSTRACT FROM AUTHOR]