A sustainable production-inventory model with imperfect quality under preservation technology and quality improvement investment

2021 ◽  
pp. 127332
Author(s):  
Arash Sepehri ◽  
Umakanta Mishra ◽  
Biswajit Sarkar
Keyword(s):  
Quality Improvement ◽  
Inventory Model ◽  
Sustainable Production ◽  
Imperfect Quality ◽  
Preservation Technology ◽  
Production Inventory

scholarly journals A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax

2019 ◽  
Vol 11 (18) ◽  
pp. 5027 ◽  
Author(s):  
Shen ◽  
Shen ◽  
Yang
Keyword(s):  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Carbon Emissions ◽  
Carbon Tax ◽  
Inventory Model ◽  
Gas Emissions ◽  
Technology Investment ◽  
Preservation Technology ◽  
Production Inventory ◽  
Preservation Technology Investment

The increase in carbon emissions is considered one of the major causes of global warming and climate change. To reduce the potential environmental and economic threat from such greenhouse gas emissions, governments must formulate policies related to carbon emissions. Most economists favor the carbon tax as an approach to reduce greenhouse gas emissions. This market-based approach is expected to inevitably affect enterprises’ operating activities such as production, inventory, and equipment investment. Therefore, in this study, we investigate a production inventory model for deteriorating items under a carbon tax policy and collaborative preservation technology investment from the perspective of supply chain integration. Our main purpose is to determine the optimal production, delivery, ordering, and investment policies for the buyer and vendor that maximize the joint total profit per unit time in consideration of the carbon tax policy. We present several numerical examples to demonstrate the solution procedures, and we conduct sensitivity analyses of the optimal solutions with respect to major parameters for identifying several managerial implications that provide a useful decision tool for the relevant managers. We hope that the study results assist government organizations in selecting a more appropriate carbon emissions policy for the carbon reduction trend.

scholarly journals A Multistage Sustainable Production–Inventory Model with Carbon Emission Reduction and Price-Dependent Demand under Stackelberg Game

2020 ◽  
Vol 10 (14) ◽  
pp. 4878
Author(s):  
Chi-Jie Lu ◽  
Tian-Shyug Lee ◽  
Ming Gu ◽  
Chih-Te Yang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Stackelberg Game ◽  
Carbon Tax ◽  
Inventory Model ◽  
Sustainable Production ◽  
Equilibrium Solutions ◽  
Production Inventory ◽  
Dependent Demand ◽  
Tax Regulation

This paper investigated a multistage sustainable production–inventory model for deteriorating items (i.e., raw materials and finished goods) with price-dependent demand and collaborative carbon reduction technology investment under carbon tax regulation. The model was developed by first defining the total profit of the supply chain members under carbon tax regulation and, second, considering a manufacturer (leader)–retailer (follower) Stackelberg game. The optimal equilibrium solutions that maximize the manufacturer’s and retailer’s total profits were determined through the method analysis. An algorithm complemented the model to determine the optimal equilibrium solutions, which were then treated with sensitivity analyses for the major parameters. Based on the numerical analysis, (a) carbon tax policies help reduce carbon emissions for both the manufacturer and retailer; (b) most carbon emissions from supply chain operations negatively impact the total profits of both members; (c) the retailer may increase the optimal equilibrium selling price to respond to an increase in carbon emissions from supply chain operations or carbon tax; and (d) autonomous consumption positively affects both members’ optimal equilibrium policies and total profits, whereas induced consumption does the opposite. These findings are very managerial and instructive for companies seeking profits and fulfilling environmental responsibility and governments.

scholarly journals Production inventory model for controllable deterioration rate with shortages

2019 ◽  
Author(s):  
Umakanta Mishra ◽  
Jacobo Tijerina-Aguilera ◽  
Sunil Tiwari ◽  
Leopoldo Eduardo Cárdenas-Barrón
Keyword(s):  
Optimal Solution ◽  
Solution Procedure ◽  
Inventory Model ◽  
Production Cycle ◽  
Proper Solution ◽  
Deterioration Rate ◽  
Preservation Technology ◽  
Production Policy ◽  
Production Inventory ◽  
Theoretical Results

This paper deals with an economic production quantity (EPQ) inventory model for deteriorating items under preservation technology. The preservation technology is used to protect the items from deterioration. Three different production levels are considered. It is assumed that initially the production rate is at lower rate and it increases gradually over the period. This is just in order to reduce the holding cost by avoiding the larger stock quantity in the beginning of production cycle. The shortages are permitted and fully backordered. The objective of the production inventory model is to determine optimal production policy which minimizes the manufacturer’s total cost. Theoretical results are established in order to demonstrate the existence of the optimal solution and a proper solution procedure is presented. A numerical example and a sensitivity analysis are presented to validate the theoretical results. Also, some managerial insights are provided.

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