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Sustainable inventory policy for an imperfect production system with energy usage and volume agility

Author

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  • K. M. Kamna

    (University of Delhi)

  • Prerna Gautam

    (University of Delhi)

  • Chandra K. Jaggi

    (University of Delhi)

Abstract

A sustainable production inventory model that addresses some of the pragmatic scenarios of the production process is developed. The production process is considered imperfect which results in the production of some imperfect quality items with known distribution. The imperfect products are managed through an efficient rework process that makes the items suitable to be vended at their original markup price only. The agile nature of the manufacturing process is considered. And, the energy usage and carbon emission in the production process is also considered. Undoubtedly, the fundamental nature of demand is sensitive to price. Thus, the model incorporates the demand to be price-contingent. The objective is to maximize the overall inventory turnover by conjointly optimizing the selling price, production rate, and production time. A numerical example is included to validate the model. Further, the sensitivity analysis unfolds valuable managerial insights for decision-makers. Findings suggest that the model with the insertion of volume agility effect performs better when compared with the one without the volume agility.

Suggested Citation

  • K. M. Kamna & Prerna Gautam & Chandra K. Jaggi, 2021. "Sustainable inventory policy for an imperfect production system with energy usage and volume agility," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(1), pages 44-52, February.
    • Handle: RePEc:spr:ijsaem:v:12:y:2021:i:1:d:10.1007_s13198-020-01006-6
    DOI: 10.1007/s13198-020-01006-6
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    Cited by:

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    2. S. Ganesan & R. Uthayakumar, 2023. "An EPQ model for a single-machine multiproduct imperfect production system using a hybrid logarithmic barrier method," OPSEARCH, Springer;Operational Research Society of India, vol. 60(3), pages 1121-1152, September.
    3. Rubi Das & Abhijit Barman & Pijus Kanti De, 2022. "Integration of pricing and inventory decisions of deteriorating item in a decentralized supply chain: a Stackelberg-game approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(1), pages 479-493, February.
    4. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    5. Nabajyoti Bhattacharjee & Nabendu Sen, 2022. "A sustainable production inventory model for profit maximization under optimum raw material input rate during production," OPSEARCH, Springer;Operational Research Society of India, vol. 59(2), pages 667-693, June.

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