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Supply chain system with deteriorating items and transportation cost with environmental consideration has recently become a popular research stream. This study revisits a supply chain system with deteriorating items and transportation cost. Processing the defective items, which increases cost, affects supply chain decisions. We present an integrated inventory model involving a three-stage supply chain and defective items with no shortage. We then derive the minimal total cost considering supplydoi:10.1088/1757-899x/598/1/012037 fatcat:wc5sgq5gkrdvvj7cliivtkmlwq