scholarly journals Sustainable production policies under the effect of volume agility, preservation technology, and price-reliant demand

2020 ◽  
Vol 30 (3) ◽  
pp. 307-324
Author(s):  
Prerna Gautam ◽  
KM Kamna ◽  
Chandra Jaggi

Any supply chain supposes production and pricing decisions. The most influential factor that affects a sales decision is the price of a product, which in turn, affects the configuration of the demand. Further, holding the produced goods means also the occurrence of deterioration as a common phenomenon, which may lead to excessive loss if left untreated. Thus, an investment in preservation process helps in controlling deterioration efficiently. Moreover, incorporation of the environmental factor presents the need of the hour in the current situation of environmental imbalance. To address the above issues, we consider volume agility to avoid any excessive storage and backlogging costs, carbon-emissions and energy-usage to address the performance of our model regarding the environment, and investment in preservation process to control the loss due to deterioration. Also, the demand of the product is taken as price-reliant. The investment in preservation, production rate, and price of the product are taken as the decision variables so as to maximize the total inventory turnover. Validity and robustness of the model is analyzed through numerical and sensitivity analysis. A wide-ranging applicability of the developed study is also provided.

Author(s):  
Nita Shah ◽  
Kavita Rabari ◽  
Ekta Patel

Our model deals with the stock-dependent demand as exhibiting huge volume of commodities leads to more costumers and augment the trading of the goods. As some goods like vegetables, fruits, medicines deteriorate after a period of time, resulting in economical and financial losses, we took this factor into consideration and included a constant deterioration rate, controlled by suitable preservation technologies. Preservation technology investments are made for the valuable business as it helps to decrease the rate of deterioration. Our model allows shortages, and back-ordering is permissible to manage the loss that occurs due to perishable objects and shortages. The objectives are to find the optimal cycle time, preservation technology cost, and positive inventory time. The paper also proves the convexity of total cost through graphs with respect to decision variables. A sensitivity analysis of decision variables with respect to different inventory parameters is carried out.


2020 ◽  
Vol 15 (4) ◽  
pp. 1419-1450 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahsa Noori-Daryan ◽  
Shib Sankar Sana

Purpose This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more. Design/methodology/approach In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers. Findings The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section. Originality/value This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.


2018 ◽  
Vol 8 (1) ◽  
pp. 203
Author(s):  
I Made Antony Dwi Putra ◽  
Agoes Ganesha Rahyuda

A large amount of inventory in the company makes high inventory cost, while low inventory will risk the occurrence of shortage of inventory. The research was conducted at Barjaz Company, to find out how the raw material inventory system applied by the company, and whether the system is efficient or not. Methods of data collection is done by conducting interviews to parties related to inventory and observation on the object under study. Data analysis techniques used are; EOQ analysis, determining safety stock, determining reorder point, determining maximum inventory, calculating inventory turnover and calculating total inventory cost. The results show that the inventory system applied today is still not effective. Companies should conduct inventory control system using EOQ method. With the implementation of EOQ, the company's inventory turnover value increased and the company issued a total inventory cost of Rp 1,099,982, lower than the company's inventory control system at Rp 1,671,100.


2020 ◽  
Vol 30 (3) ◽  
pp. 339-360
Author(s):  
Aditi Khanna ◽  
Prerna Gautam ◽  
Ahmad Hasan ◽  
Chandra Jaggi

The present paper considers the effect of imperfect quality items on a production system which further undergoes inspection and rework. The demand of the product is price reliant. Two situations to handle the imperfect items are analyzed: selling them at a reduced price and reworking them. The demand is assumed to meet with perfect products in either case. Further, the study incorporates the carbon-emissions borne during production of goods and their holding in the inventory system. The model aims at maximizing the profit function by jointly optimizing mark-up price and production quantity. To demonstrate model characteristics, numerical and sensitivity analysis are also presented.


2020 ◽  
Vol 21 (1) ◽  
pp. 22
Author(s):  
Felix Arya Gunadi ◽  
Dharma Lesmono ◽  
Kinley Aritonang

Currently, the company competition is getting tighter. Distribution companies need to provide excellent service to their customers to maintain their competitiveness. Distribution service performance could be measured with lead time. However, Reducing lead times may increase costs. This problem could be solved using freight consolidation and reducing backhaul. Freight consolidation can be done by using a hub-and-spoke network with a combination of inbound and outbound distribution. This study developed a route model for hybrid hub-and-spoke with time windows. This model determined the routes for shipping goods to consumers and taking products to suppliers using the same vehicle to reduce the backhaul. This model also conducted freight consolidation at the hub. The decision variables in this model included the routes of delivery to consumers, the collection of goods at the suppliers, the number of products distributed through the hub and direct shipping, and the good distribution route. This model was implemented into the problems. Besides, sensitivity analysis of the model was carried out.


2014 ◽  
Vol 24 (1) ◽  
pp. 87-98 ◽  
Author(s):  
Vinod Mishra

In this paper, we develop an inventory model for non-instantaneous deteriorating items under the consideration of the facts: deterioration rate can be controlled by using the preservation technology (PT) during deteriorating period, and holding cost and demand rate both are linear function of time, which was treated as constant in most of the deteriorating inventory models. So in this paper, we developed a deterministic inventory model for non-instantaneous deteriorating items in which both demand rate and holding cost are a linear function of time, deterioration rate is constant, backlogging rate is variable and depend on the length of the next replenishment, shortages are allowed and partially backlogged. The model is solved analytically by minimizing the total cost of the inventory system. The model can be applied to optimizing the total inventory cost of non-instantaneous deteriorating items inventory for the business enterprises, where the preservation technology is used to control the deterioration rate, and demand & holding cost both are a linear function of time.


2018 ◽  
Vol 17 (1) ◽  
pp. 64 ◽  
Author(s):  
Eri Wirdianto ◽  
Ericho Chandra Arnes

The scheduling of electrical energy usage during Peak Load Period (PLP) is a complicated problem that has been faced by PT Semen Padang after Indonesian Power Company (PLN) implemented the demarcation regulation of electrical energy usage during PLP (6:00 – 10:00 p.m.) which may not exceed 44.100 kWH. This regulation forces Production Department of PT Semen Padang to arrange the “on (1) or off (0)” schedule for the Raw Mills and Cement Mills during PLP. A Raw Mill or Cement Mill can be switched-off if the specified criteria are satisfied. Those criteria refer to the achievement of daily production targets, silo content at PLP, and the requirement for particular Raw Mill or Cement Mill to be off during those 4 hours of PLP. Meanwhile, the constraints are related to the length of machining hours of Raw Mill, Kiln or Cement Mill before preventive maintenance takes place. To solve this problem, a scheduling model for Raw Mills and Cement Mills on-off during PLP is then developed using a linear programming approach. The decision variables are the “on-off” state of Raw Mills and Cement Mills during PLP, while the objective function is to minimize the penalty expense of energy used during PLP. The developed scheduling model has the ability to solve the problem of the “on-off” assignment for Raw Mills and Cement Mills from Indarung II to Indarung V. This scheduling model can decrease the penalty of electrical energy expense during PLP from Rp. 3.07 billion to Rp. 1.79 billion.


2021 ◽  
Author(s):  
Israel Mayo-Molina ◽  
Juliana Y. Leung

Abstract The Steam Alternating Solvent (SAS) process has been proposed and studied in recent years as a new auspicious alternative to the conventional thermal (steam-based) bitumen recovery process. The SAS process incorporates steam and solvent (e.g. propane) cycles injected alternatively using the same configuration as the Steam-Assisted Gravity-Drainage (SAGD) process. The SAS process offers many advantages, including lower capital and operational cost, as well as a reduction in water usage and lower Greenhouse Gas (GHG) Emissions. On the other hand, one of the main challenges of this relatively new process is the influence of uncertain reservoir heterogeneity distribution, such as shale barriers, on production behaviour. Many complex physical mechanisms, including heat transfer, fluid flows, and mass transfer, must be coupled. A proper design and selection of the operational parameters must consider several conflicting objectives. This work aims to develop a hybrid multi-objective optimization (MOO) framework for determining a set of Pareto-optimal SAS operational parameters under a variety of heterogeneity scenarios. First, a 2-D homogeneous reservoir model is constructed based on typical Cold lake reservoir properties in Alberta, Canada. The homogeneous model is used to establish a base scenario. Second, different shale barrier configurations with varying proportions, lengths, and locations are incorporated. Third, a detailed sensitivity analysis is performed to determine the most impactful parameters or decision variables. Based on the results of the sensitivity analysis, several objective functions are formulated (e.g., minimizing energy and solvent usage). Fourth, Response Surface Methodology (RSM) is applied to generate a set of proxy models to approximate the non-linear relationship between the decision variables and the objective functions and to reduce the overall computational time. Finally, three Multi-Objective Evolutionary Algorithms (MOEAs) are applied to search and compare the optimal sets of decision parameters. The study showed that the SAS process is sensitive to the shale barrier distribution, and that impact is strongly dependent on the location and length of a specific shale barrier. When a shale barrier is located near the injector well, pressure and temperature may build up in the near-well area, preventing additional steam and solvent be injected and, consequently, reducing the oil production. Operational constraints, such as bottom-hole pressure, steam trap criterion, and bottom-hole gas rate in the producer, are among various critical decision variables examined in this study. A key conclusion is that the optimal operating strategy should depend on the underlying heterogeneity. Although this notion has been alluded to in other previous steam- or solvent-based studies, this paper is the first to utilize a MOO framework for systematically determining a specific optimal strategy for each heterogeneity scenario. With the advancement of continuous downhole fibre-optic monitoring, the outcomes can potentially be integrated into other real-time reservoir characterization and optimization work-flows.


Author(s):  
Abay Molla Kassa ◽  
Semu Mitiku Kassa

In this paper, we developed a novel algorithmic approach for thesolution of multi-parametric non-convex programming problems withcontinuous decision variables. The basic idea of the proposedapproach is based on successive convex relaxation of each non-convexterms and sensitivity analysis theory. The proposed algorithm isimplemented using MATLAB software package and numericalexamples are presented to illustrate the effectiveness andapplicability of the proposed method on multi-parametric non-convexprogramming problems with polyhedral constraints.


2020 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Rajesh Kumar Mishra ◽  
Vinod Kumar Mishra

<p>In this paper, impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution has been studied. The phenomenon of substitution is considered in a stock-out situation and when items become out of stock due to demand then unfulfilled demand is asymmetrically substituted by another item. We formulate the inventory model mathematically and derived optimal ordering quantities, optimal total costs and extreme value of substitution rate for all possible cases. Moreover, pseudo-convexity of the total inventory cost function is obtained and the solution procedure is provided. Numerical example and sensitivity analysis have been presented to validate the effectiveness of the inventory model and substantial improvement in total optimal inventory cost with substitution with respect to optimal total inventory cost without substitution is seen.</p><p><em><br /></em></p>


Sign in / Sign up

Export Citation Format

Share Document