scholarly journals Low Carbon Economic Production Quantity Model for Imperfect Quality Deteriorating Items

Author(s):  
Y Daryanto ◽  
H.M. Wee

This paper presents an economic production quantity (EPQ) model for deteriorating items with a certain percentage of defective products due to an imperfect process. The defective products are sold to a secondary market at a discount price. Due to environmental concern and carbon tax regulation, the manufacturer incorporates the control of carbon emission cost into its decision model. Carbon emission cost is a function of electricity consumption during production and inventory storage; it is also dependent on the carbon tax rate. Since the production process results in work-in-process inventory and carbon emission, the study tries to optimize the throughput time. We also examine the effect of carbon tax regulation on the potential emission reduction from the developed deteriorating item model. A numerical example and sensitivity analysis have been provided, and the result confirms the influence of carbon tax regulation in reducing carbon emission.

2011 ◽  
Vol 2 (3) ◽  
pp. 55-90 ◽  
Author(s):  
R. Uthayakumar ◽  
M. Valliathal

This paper discusses an Economic Production Quantity model for Weibull deteriorating items over an infinite time horizon under fuzzy environment. Fuzziness is introduced by allowing the cost components such as setup cost, production cost, holding cost, shortage cost and opportunity cost due to lost sales to certain extent. Triangular fuzzy numbers are used to represent the mentioned costs. Optimum policies of the described models under fuzzy costs are derived. The proposed model can be extended in several ways. For instance, the deterministic demand function to stochastic fluctuating demand patterns could be considered. The model could also be generalized to allow for quantity discounts, as well as permissible delay in payments.


2020 ◽  
Vol 15 (3) ◽  
pp. 189-195
Author(s):  
Hendri Wijaya ◽  
Luky Puspasari

Manajemen persediaan dapat meningkatkan kemampuan perusahaan untuk menghasilkan produk tepat waktu, dengan jumlah yang tepat, serta kualitas yang sesuai standar. PT XYZ adalah perusahaan yang menghasilkan produk ban tubless. Terdapat 8 proses untuk menghasilkan ban tubeless, dan masing-masing proses menghasilkan penyimpanan work in process.  Salah satu dari work in process adalah green tyre.  PT XYZ menghadapi masalah terjadi overstock pada green tyre yang menimbulkan produk cacat. Tujuan dari studi adalah untuk menentukan jumlah produksi yang tepat untuk mengatasi permasalahan overstock. Metode yang digunakan untuk menyelesaikan permasalahan ini adalah Economic Production Quantity (EPQ). Metode EPQ terbukti dapat mengurangi biaya penyimpanan dalam satu bulan sebesar Rp 33,218,117 atau sebesar 40% dari biaya semula. Alat penyimpanan juga dapat dikurangi sebesar 34%, serta luas area penyimpanan dapat dikurangi sebesar 14%. AbstractInventory management can increase a company's ability to produce products on time, with the correct amount and meet the quality standard.  PT XYZ is a company that produces tubeless tyres. There are eight processes to produce the tubeless tyre, and each process results a work in process inventory. One of the process is a green tyre.  PT XYZ faces the overstock of green tyre that raises the amount of the defect.  The aim of this study was to determine the amount of production appropriately to avoid the overstock problem. Economic Production Quantity (EPQ) method was used to solve this problem. EPQ method decreased the inventory cost as much as IDR 33,218,117 or 40% of the existing inventory cost, and reduced storage tools of 34% and reduced the storage area of 14 %.Keywords: work in process; inventory; green tyre; overstock; eqonomic production quantity


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