This article highlights an optimal strategy for a supply chain model
having a defective manufacturing process for deteriorating items with cloudy
fuzzy inflation. The system considers two different consumption rates at
different time periods for the supplier. The imperfection during productioncauses ambiguity for the total production schedule, which affects the total
shipment delivered by the manufacturer to the supplier. To emphasise the
co-ordination between supplier and producer, a percentage of the total transport
expenditures of the supplier is provided by the producer which helps the
supplier to deliver the shipment fast and safely. The model has been developed
over every likely expense incurred for the supply chain system, i.e., fixed and
variable transportation costs, labour cost, costs of scrapping imperfect objects,
etc. The formulated model is also justified using numerical examples and
sensitivity analysis of the important parameters to inspect the effect on the
optimal total cost.