An integrated production-distribution inventory system for deteriorating products involving fuzzy deterioration and variable setup cost

Soni²,

et al. 2021

Mathematics

With the increase in the varieties products and the increasing uncertainty about product demand, the production preparation time is a significant factor in addressing these issues. The trade-off between the reduction of the production preparation time and the associated cost remains a critical decision. With this backdrop, this study presents a continuous review production-inventory model with a variable production preparation time and a time-dependent setup cost. The demand during the preparation time is captured through a min-max distribution-free approach. In a stochastic framework, the order quantity, reorder point, and setup time are optimized by minimizing the expected cost considering the time-value effect. Further, a fuzzy model is formulated to tackle the imprecise nature of the production setup time and demand. Two algorithms are developed using an analytical approach to obtain the optimal solution. A numerical illustration is given to present the key insights of the model for effective inventory management. It is observed that order quantity and total cost are more sensitive at the lower side of the optimal setup time rather than at the higher side. The discount rate is also found to be a sensitive factor while minimizing the total expected cost.

Section: Optimal Solutionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A Continuous Review Production-Inventory System with a Variable Preparation Time in a Fuzzy Random Environment

Soni²,

et al. 2021

Mathematics

Mathematical Problems in Engineering

“…With a focus on inventory planning, Priyan and Uthayakumar investigated the fuzzy deterioration in modeling integrated P-D. Furthermore, they viewed the setup cost as a function of capital expenditure that can reduce extra investment [25]. Rezaeian et al…”

Section: Literature Reviewmentioning

confidence: 99%

Integrated Quality-Based Production-Distribution Planning in Two-Echelon Supply Chains

Pasha

Kamalabadi

Eydi

2021

The integrated production-distribution (P-D) planning has turned into one of the most essential areas in supply chain (SC) management in recent years, especially in the case of perishable products in which the quality of products can change over time. Nonetheless, so far, the suggested models have focused on the P-D stages of the chain while the delivery of high-quality products to customers is of paramount significance in the perishable SC. In the present paper, a multiobjective, mixed-integer, and nonlinear programming (MOMINLP) mathematical model was developed for integrated P-D deteriorating items in a two-echelon SC that emphasizes quality degradation. Quality is monitored and calculated as a function of temperature and time throughout the SC, and the main purpose of the model is to first increase the quality of products delivered to customers and, second, minimize the SC costs. To optimize the problem, the particle swarm optimization (PSO) approach was also incorporated into the model. The obtained model was applied to a case study in Protein Gostar Sina Company in Iran, which resulted in decreased P-D costs as well as increased customer satisfaction.

Journal of Industrial &Amp; Management Optimization

“…A random rate of deterioration in a production system was modeled by Sarkar [25], where he proposed and solved several models by considering rate of deterioration as uniform, triangular or beta distribution. An uncertain rate of deterioration in a production model was considered by Priyan and Uthayakumar [19]. Assuming that the whole product expires when the rate of deterioration reaches 100%, Chen and Teng [6] proposed a supply chain system of deteriorating products with a time varying rate of deterioration.Önal et al [18] discussed an economic order quantity model for deteriorating products with selling-price-and displayed-stock dependent demand.…”

mentioning

confidence: 99%

“…Time-varying MLD − − Priyan and Uthayakumar [19] Fuzzy Triangular − − Shah et al [29] Time-varying MLD √ − Tsao [34] Constant − √…”

mentioning

confidence: 99%

Application of preservation technology for lifetime dependent products in an integrated production system

Iqbal

Sarkar²

2020

It is important to adopt precisely the optimum level of preservation technology for deteriorating products, as with every passing day, a larger number of items deteriorate and cause an economic loss. For earning more profit, industries have a tendency to add more preservatives for long lifetime of products. However, realizing the health issues, there is a boundary that no manufacturer can add huge amount of preservatives for infinite lifetime of products. The correlation between the long lifetime along with the price of the product is introduced in this model to show the benefit of the optimum level of investment in preservation technology. To maintain the environmental sustainability, the deteriorated items, which can no longer be preserved by adding preservatives anywhere, are disposed with proper protection. The objective of the study is to obtain profit to show the application through a non-linear mathematical. The model is solved through Kuhn-Tucker and an algorithm. Robustness of the model is verified through numerical experiments and sensitivity analysis. Some comparative analyses are provided, which support the adoption of preservation technology for deteriorating products. Numerical studies proved that the profit increases significantly with the application of proposed preservation technology. Some important managerial insights are provided to help the decision makers while implementing the proposed model in real-world situations.