IDEAS home Printed from https://ideas.repec.org/a/spr/ijsaem/v12y2021i1d10.1007_s13198-020-01006-6.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13198-020-01006-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13198-020-01006-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xiuli Chao & Xiting Gong & Shaohui Zheng, 2016. "Optimal pricing and inventory policies with reliable and random-yield suppliers: characterization and comparison," Annals of Operations Research, Springer, vol. 241(1), pages 35-51, June.
    2. Daryanto, Yosef & Wee, Hui Ming & Astanti, Ririn Diar, 2019. "Three-echelon supply chain model considering carbon emission and item deterioration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 368-383.
    3. Chang, Horng-Jinh & Teng, Jinn-Tsair & Ouyang, Liang-Yuh & Dye, Chung-Yuan, 2006. "Retailer's optimal pricing and lot-sizing policies for deteriorating items with partial backlogging," European Journal of Operational Research, Elsevier, vol. 168(1), pages 51-64, January.
    4. Goyal, S. K. & Gunasekaran, A. & Martikainen, T. & Yli-Olli, P., 1993. "Integrating production and quality control policies: A survey," European Journal of Operational Research, Elsevier, vol. 69(1), pages 1-13, August.
    5. Abad, P. L. & Jaggi, C. K., 2003. "A joint approach for setting unit price and the length of the credit period for a seller when end demand is price sensitive," International Journal of Production Economics, Elsevier, vol. 83(2), pages 115-122, February.
    6. David F. Drake & Paul R. Kleindorfer & Luk N. Van Wassenhove, 2016. "Technology Choice and Capacity Portfolios under Emissions Regulation," Production and Operations Management, Production and Operations Management Society, vol. 25(6), pages 1006-1025, June.
    7. P-S You, 2005. "Inventory policy for products with price and time-dependent demands," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(7), pages 870-873, July.
    8. Qingguo Bai & Yeming Gong & Mingzhou Jin & Xianhao Xu, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," Post-Print hal-02312264, HAL.
    9. Gurnani, Haresh & Drezner, Zvi & Akella, Ram, 1996. "Capacity planning under different inspection strategies," European Journal of Operational Research, Elsevier, vol. 89(2), pages 302-312, March.
    10. Beatrice Marchi & Simone Zanoni & Ivan Ferretti & Lucio E. Zavanella, 2018. "Stimulating Investments in Energy Efficiency Through Supply Chain Integration," Energies, MDPI, vol. 11(4), pages 1-13, April.
    11. Himani Dem & S.R. Singh, 2015. "Joint replenishment modelling of a multi-item system with greening policy and volume flexibility," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 22(2), pages 148-166.
    12. Chen, Haoya & Chen, Youhua (Frank) & Chiu, Chun-Hung & Choi, Tsan-Ming & Sethi, Suresh, 2010. "Coordination mechanism for the supply chain with leadtime consideration and price-dependent demand," European Journal of Operational Research, Elsevier, vol. 203(1), pages 70-80, May.
    13. Polatoglu, Hakan & Sahin, Izzet, 2000. "Optimal procurement policies under price-dependent demand," International Journal of Production Economics, Elsevier, vol. 65(2), pages 141-171, April.
    14. Sarkar, Biswajit & Ganguly, Baishakhi & Sarkar, Mitali & Pareek, Sarla, 2016. "Effect of variable transportation and carbon emission in a three-echelon supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 112-128.
    15. Bai, Qingguo & Gong, Yeming (Yale) & Jin, Mingzhou & Xu, Xianhao, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," International Journal of Production Economics, Elsevier, vol. 208(C), pages 83-99.
    16. Biel, K. & Glock, C. H., 2016. "Systematic literature review of decision support models for energy-efficient production planning," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 83071, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Tang, Christopher S., 1991. "Designing an optimal production system with inspection," European Journal of Operational Research, Elsevier, vol. 52(1), pages 45-54, May.
    18. P. L. Abad, 1996. "Optimal Pricing and Lot-Sizing Under Conditions of Perishability and Partial Backordering," Management Science, INFORMS, vol. 42(8), pages 1093-1104, August.
    19. Khouja, Moutaz, 1997. "The scheduling of economic lot sizes on volume flexible production systems," International Journal of Production Economics, Elsevier, vol. 48(1), pages 73-86, January.
    20. Dye, Chung-Yuan, 2007. "Joint pricing and ordering policy for a deteriorating inventory with partial backlogging," Omega, Elsevier, vol. 35(2), pages 184-189, April.
    21. Giri, B.C. & Dohi, T., 2007. "Inspection scheduling for imperfect production processes under free repair warranty contract," European Journal of Operational Research, Elsevier, vol. 183(1), pages 238-252, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. K. M. Kamna & Priyamvada & Jitendra Singh & Chandra K. Jaggi, 2024. "A green strategic approach towards a smart production system with promotional and environment sensitive demand," 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. 15(8), pages 3672-3687, August.
    2. 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.
    3. Ehsan Najafnejhad & Mahdieh Tavassoli Roodsari & Somayeh Sepahrom & Mojtaba Jenabzadeh, 2021. "A mathematical inventory model for a single-vendor multi-retailer supply chain based on the Vendor Management Inventory Policy," 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(3), pages 579-586, June.
    4. 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.
    5. 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.
    6. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. K. M. Kamna & Prerna Gautam & Chandra K. Jaggi, 0. "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. 0, pages 1-9.
    2. Xia, Jing & Niu, Wenju, 2021. "Carbon-reducing contract design for a supply chain with environmental responsibility under asymmetric information," Omega, Elsevier, vol. 102(C).
    3. Fang, Yuan & Yu, Yugang & Shi, Ye & Liu, Jie, 2020. "The effect of carbon tariffs on global emission control: A global supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    4. Wang, Moran & Li, Xuerong & Wang, Shouyang, 2021. "Discovering research trends and opportunities of green finance and energy policy: A data-driven scientometric analysis," Energy Policy, Elsevier, vol. 154(C).
    5. Mei, Qihuang & Li, Jianbin & Ursavas, Evrim & Zhu, Stuart X. & Luo, Xiaomeng, 2021. "Freight transportation planning in platform service supply chain considering carbon emissions," International Journal of Production Economics, Elsevier, vol. 240(C).
    6. Lee, Jun-Yeon & Choi, Sungyong, 2021. "Supply chain investment and contracting for carbon emissions reduction: A social planner's perspective," International Journal of Production Economics, Elsevier, vol. 231(C).
    7. Reza Maihami & Behrooz Karimi & Seyyed Mohammad Taghi Fatemi Ghomi, 2017. "Effect of two-echelon trade credit on pricing-inventory policy of non-instantaneous deteriorating products with probabilistic demand and deterioration functions," Annals of Operations Research, Springer, vol. 257(1), pages 237-273, October.
    8. Shah, Nita H & Soni, Hardik N & Patel, Kamlesh A, 2013. "Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates," Omega, Elsevier, vol. 41(2), pages 421-430.
    9. Doo-Ho Lee & Jong-Chul Yoon, 2022. "Decisions on Pricing, Sustainability Effort, and Carbon Cap under Wholesale Price and Cost-Sharing Contracts," Sustainability, MDPI, vol. 14(8), pages 1-21, April.
    10. Changhong Li & Jiani Gao & Jiaqi Guo & Jialuo Wang, 2022. "Low-Carbon Supply Chain Decisions Considering Carbon Emissions Right Pledge Financing in Different Power Structures," Energies, MDPI, vol. 15(15), pages 1-22, August.
    11. Abad, Prakash L., 2008. "Optimal price and order size under partial backordering incorporating shortage, backorder and lost sale costs," International Journal of Production Economics, Elsevier, vol. 114(1), pages 179-186, July.
    12. Zhitao Xu & Adel Elomri & Shaligram Pokharel & Fatih Mutlu, 2019. "The Design of Green Supply Chains under Carbon Policies: A Literature Review of Quantitative Models," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    13. Bai, Qingguo & Chen, Jiguang & Xu, Jianteng, 2023. "Energy conservation investment and supply chain structure under cap-and-trade regulation for a green product," Omega, Elsevier, vol. 119(C).
    14. Lee, Seungrae & Park, Seung Jae, 2020. "Who should lead carbon emissions reductions? Upstream vs. downstream firms," International Journal of Production Economics, Elsevier, vol. 230(C).
    15. Jauhari, Wakhid Ahmad & Adam, Niimas Ayu Frensilia Putri & Rosyidi, Cucuk Nur & Pujawan, I Nyoman & Shah, Nita H., 2020. "A closed-loop supply chain model with rework, waste disposal, and carbon emissions," Operations Research Perspectives, Elsevier, vol. 7(C).
    16. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    17. Maihami, Reza & Nakhai Kamalabadi, Isa, 2012. "Joint pricing and inventory control for non-instantaneous deteriorating items with partial backlogging and time and price dependent demand," International Journal of Production Economics, Elsevier, vol. 136(1), pages 116-122.
    18. Junsong Bian & Xiaolong Guo, 2022. "Policy analysis for emission-reduction with green technology investment in manufacturing," Annals of Operations Research, Springer, vol. 316(1), pages 5-32, September.
    19. Maryam Ghoreishi & Gerhard-Wilhelm Weber & Abolfazl Mirzazadeh, 2015. "An inventory model for non-instantaneous deteriorating items with partial backlogging, permissible delay in payments, inflation- and selling price-dependent demand and customer returns," Annals of Operations Research, Springer, vol. 226(1), pages 221-238, March.
    20. Prashant Chintapalli, 2015. "Simultaneous pricing and inventory management of deteriorating perishable products," Annals of Operations Research, Springer, vol. 229(1), pages 287-301, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijsaem:v:12:y:2021:i:1:d:10.1007_s13198-020-01006-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.