An imperfect production inventory model with setup cost reduction and carbon emission for an integrated supply chain

Abstract

The present paper develops a sustainable framework under a supply chain environment by considering a vendor and a buyer. The vendor governs the manufacturing process to serve the demand of the buyer. The manufacturing system is imperfect which ends up producing some fraction of defectives. For the sake of maintaining the goodwill of the organization, it is imperative to maintain the quality standards. Thus, the buyer employs the screening process to bifurcate the perfect items from the imperfect ones. The imperfect items secluded after screening are reverted back to the vendor, for which a warranty cost is incurred. Further, in an attempt to achieve sustainability the model considers the carbon-emissions costs during the transportation process. A one-time discrete investment is also considered for minimizing the setup cost of the vendor for subsequent cycles. The models are developed for the case of the individual decision and for the joint verdict of the players under consideration. Moreover, it has been proved that the integrated model performs proficiently over the individual model. The objective is to jointly optimize the costs sustained by the two players. Numerical analysis and sensitivity analysis is done for imparting the validity and robustness of the model.

Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items

“…In the first case, the buyer performs the quality inspection, and in the second case, the quality inspection becomes the vendor's responsibility. The first model extends the studies of Wahab et al [10], Jauhari et al [11], Sarkar et al [12], Jauhari [13], and Gautam and Khanna [14] to consider the effect of deterioration. In addition to the fixed and variable inspection costs, the model also extends Tiwari et al's [15] model by introducing weight and distance-dependent transportation cost and emission variables.…”

“…Recently, Sarkar et al [7,8] and Daryanto and Wee [9] incorporated a carbon tax in a supply chain total cost model. Wahab et al [10], Jauhari et al [11], Sarkar et al [12], Jauhari [13], Gautam and Khanna [14], and Tiwari et al [15] incorporated both carbon emissions and imperfect quality in a low-carbon supply chain model. The quality inspection is performed by the buyer, and the defective products are sent back to the vendor or sold into the secondary market at a discounted price.…”

A Joint Dynamic Pricing, Advertising, and Production Model with Inventory-Level-Dependent Goodwill

“…In order to better study the actual business situation, both the goodwill and demand dynamics would naturally take uncertainty into account. Furthermore, it is interesting to investigate the costly price adjustment and defect management [49][50][51] based on the current model [52].…”

Back-ordered inventory model with inflation in a cloudy-fuzzy environment

“…Pervin et al [29] proposed a model by treating constant partially back-ordered rate. Furthermore, an imperfect production quantity inventory model with carbon emission for an integrated supply chain has been developed by Gautam and Khanna [10], where shortages were fully backlogged. Kumar et al [24] described a fuzzy inventory model for deteriorating items with time-dependent demand and partial backlogging, where backlogging rate was treated as a fuzzy number.…”