scholarly journals Inventory and pricing decisions for an imperfect production system with quality inspection, rework, and carbon-emissions

2020 ◽  
Vol 30 (3) ◽  
pp. 339-360
Author(s):  
Aditi Khanna ◽  
Prerna Gautam ◽  
Ahmad Hasan ◽  
Chandra Jaggi
Keyword(s):  
Sensitivity Analysis ◽  
Carbon Emissions ◽  
Production System ◽  
Inventory System ◽  
Profit Function ◽  
Quality Inspection ◽  
Pricing Decisions ◽  
Imperfect Production ◽  
Imperfect Items ◽  
Production Quantity

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.

scholarly journals An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach

2019 ◽  
Vol 17 (2) ◽  
pp. 282-304
Author(s):  
Katherinne Salas-Navarro ◽  
Jaime Acevedo-Chedid ◽  
Gina Mora Árquez ◽  
Whady F. Florez ◽  
Holman Ospina-Mateus ◽  
...  
Keyword(s):  
Supply Chain ◽  
Production System ◽  
Inventory Model ◽  
Collaborative Approach ◽  
Lot Size ◽  
Defective Items ◽  
Content Type ◽  
Imperfect Production ◽  
Imperfect Items ◽  
Exponential Probability

Purpose The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The demand rate of the inventory system is random and follows an exponential probability density function and the demand of the retailers is depending on the initiatives of the sales team. Design/methodology/approach Two approaches are examined. In the non-collaborative approach, any member of the supply chain can be the leader and takes decisions to optimize the profits, and in the collaborative system, all members make joint decisions about the production, supply, sales and inventory to optimize the profits of the supply chain members. The calculus approach is applied to find the maximum profit related to the members of the supply chain. Findings A numerical example is presented to illustrate the performance of the EPQ model. The results show that collaborative approach generates greater profits to the supply chain and the market’s demand represents the variable behavior and uncertainty that is generated in the replenishment of a supply chain. Originality/value The new and major contributions of this research are: the inventory model considers demand for products is random variable which follows an exponential probability distribution function and it also depends on the initiatives of sales teams, the imperfect production system generates defective items, different cycle time are considered in manufacturer and retailers and collaborative and non-collaborative approaches are also studied.

A Study on Imperfect Production System Under Maintenance Strategies and Warranty

2018 ◽  
pp. 371-387
Author(s):  
Chandra K. Jaggi ◽  
Prerna Gautam ◽  
Aditi Khanna
Keyword(s):  
Sensitivity Analysis ◽  
Production System ◽  
Preventive Maintenance ◽  
World Wide ◽  
Maintenance Cost ◽  
Total Cost ◽  
Imperfect Production ◽  
Holding Cost ◽  
Warranty Cost ◽  
Model Features

In every production system, malfunctioning or breakdown during run time can incur heavy loss to the organization, to overcome such a situation it is crucial to use maintenance actions which can be either corrective or preventive depending upon the condition of the system. Also, warranty policy is extensively used world-wide to increase customer confidence in the product and to uplift sales. On account of this, the present chapter presents a problem of a manufacturer dealing with an imperfect production system considering maintenance actions and warranty policy by trading off the rework cost, holding cost, warranty cost and corrective/preventive maintenance cost so as to minimize the manufacturer's total cost. Numerical analysis and sensitivity analysis is performed to showcase model features.

scholarly journals Optimal Strategies for Manufacturers with the Reference Effect under Carbon Emissions-Sensitive Random Demand

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Baojun Zhang ◽  
Shaojian Qu ◽  
Panpan Li ◽  
Ripeng Huang
Keyword(s):  
Sensitivity Analysis ◽  
Carbon Emissions ◽  
Classical Model ◽  
Optimal Strategies ◽  
Selling Price ◽  
Optimal Solutions ◽  
Random Demand ◽  
Strategic Customers ◽  
Managerial Implications ◽  
Production Quantity

In this paper, we study the optimal strategies for a newsvendor system with joint reference effect, carbon emissions-sensitive random demand, and strategic customers’ behavior. The newsvendor’s decisions are to determine the selling price, production quantity, and carbon emissions under exogenous and endogenous price cases, respectively. We also explore how the loss aversions affect the newsvendor’s decisions. It is shown that the newsvendor has a uniquely optimal policy. The influence of the reference effect makes the final decisions deviate from the optimal solutions of the classical model. Furthermore, the sensitivity analysis indicates that the loss aversions have a great impact on the newsvendor’s decisions. Finally, more managerial implications are derived by numerical simulations.

scholarly journals Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives

2021 ◽  
Author(s):  
Prerna Gautam ◽  
Sumit Maheshwari ◽  
Ahmad Hasan ◽  
Amrina Kausar ◽  
Chandra K Jaggi
Keyword(s):  
Sensitivity Analysis ◽  
Carbon Emissions ◽  
Cost Effective ◽  
Industrial Sector ◽  
Batch Size ◽  
Selling Price ◽  
Energy Usage ◽  
Imperfect Production ◽  
Production Processes ◽  
The Cost

Every industrial sector emits carbon emissions during production, which is always a major concern for environmental practitioners. To resolve this, innovative and smart ways are required that are not only cost-effective but also environmentally savvy. Moreover, the production processes are also prone to various imperfections, and thus the production of defectives is quite pragmatic. The handling of such defective products varies from industry to industry and type of products. The present study constructs an inventory model to handle the defective products via a proficient rework strategy that makes the product fit to be sold at the primary price. Here, the demand for the product is assumed to be dependent on the selling price and advertisements. The model also considers the energy usage during the production and the cost of carbon emissions while optimizing the production batch size and selling price. Optimality is proved graphically by using the software Mathematica 11.0. A comprehensive sensitivity analysis for all the parameters is performed to impart managerial insights and robustness to the model.

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