Sustainable inventory policy for an imperfect production system with energy usage and volume agility

A sustainable production inventory model that addresses some of the pragmatic scenarios of the production process is developed. The production process is considered imperfect which results in the production of some imperfect quality items with known distribution. The imperfect products are managed t...

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Bibliographic Details
Published in:International journal of system assurance engineering and management 2021-02, Vol.12 (1), p.44-52
Main Authors: Kamna, K. M., Gautam, Prerna, Jaggi, Chandra K.
Format: Article
Language:English
Subjects:
Agile manufacturing
Decision analysis
Decision making
Energy consumption
Engineering
Engineering Economics
Logistics
Marketing
Mathematical models
Organization
Original Article
Quality Control
Reliability
Safety and Risk
Sensitivity analysis
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Summary:A sustainable production inventory model that addresses some of the pragmatic scenarios of the production process is developed. The production process is considered imperfect which results in the production of some imperfect quality items with known distribution. The imperfect products are managed through an efficient rework process that makes the items suitable to be vended at their original markup price only. The agile nature of the manufacturing process is considered. And, the energy usage and carbon emission in the production process is also considered. Undoubtedly, the fundamental nature of demand is sensitive to price. Thus, the model incorporates the demand to be price-contingent. The objective is to maximize the overall inventory turnover by conjointly optimizing the selling price, production rate, and production time. A numerical example is included to validate the model. Further, the sensitivity analysis unfolds valuable managerial insights for decision-makers. Findings suggest that the model with the insertion of volume agility effect performs better when compared with the one without the volume agility.
ISSN:0975-6809
0976-4348
DOI:10.1007/s13198-020-01006-6