An integrated inventory model with agile production rate, defective items, inflation, and green technology investments for deteriorating products
Subject Areas : Operation and Chain Management
Nita Shah
1
(
Department of Mathematics,
Gujarat University, Ahmedabad,
Gujarat,
India
)
Pratik Shah
2
(
Department of Mathematics
C.U.Shah Government Polytechnic
Surendranagar
Gujarat
India
)
Milan Patel
3
(
Department of Mathematics
Gujarat University
Ahmedabad
Gujarat
India
)
Keywords: Green Efforts, Deterioration, Carbon emission, Imperfect production system,
Abstract :
The paper analyses an inventory model for make-to-order policy from the customer to the dealer. The production rate is variable to meet customers’ demands in time and to control the emission of carbon units produced during the manufacturing process. The manufacturing process is not perfect and produces defective items depending on the production rate. The dealer invests in green technology to reduce the number of carbon units produced during different stages of manufacturing and storage. Products are deteriorating in nature and their demand is influenced by the selling price of the product and green technology investments. The effect of inflation is also considered in various costs to carry out the study. First, a mathematical model is developed with given constraints and then elaborated with a numerical example. The objective is to find out the optimum values of production time, cycle time, green technology cost, and product selling price to maximize the dealer's total profit. The model is further analyzed to check the effect of marginal changes in inventory parameters on the decision variables and the results are used to study managerial insights.