Greening efforts and deteriorating inventory policies for price-sensitive stock-dependent demand

Shah, Nita H.; Rabari, Kavita; Patel, Ekta

doi:10.1080/23302674.2021.2022808

Cited by 15 publications

(7 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They also considered flexible manufacturing concept to control carbon emission units. Shah et al [15] investigated inventory policies for a system of deteriorating products. They analyzed the model by considering price sensitive -stock dependent demand.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply chain coordination with flexible payment policy under effect of green technology investments

Shah

Patel

2023

YUGOSLAV J OPERATION

View full text Add to dashboard Cite

At present, augmentation of carbon gases in atmosphere has become a major concern. Regulatory bodies in many countries have focused on reduction of carbon emissions. Several countries follow carbon tax and carbon cap trade policy to control emission of carbon gases. This study has been carried out to obtain joint inventory policies for a supply chain involving a manufacturer and a whole-seller. Moreover, the manufacturer invests in green technology to reduce units of carbon gases. Products are considered deteriorating in nature. Manufacturer delivers product by adopting a lot-for lot policy to meet the whole-seller?s demand. The manufacturer offers the whole-seller flexible payment options including advance payment with discounted product price and delayed payment with increment in product price. Optimal policies for both individuals and the supply chain are discussed with aim to maximize total profit. The model is worked out and results are compared for four cases: (i) advance payment with green technology investments (ii) advance payment without green technology investments (iii) delayed payment with green technology investments (iv) delayed payment without green technology investments. A solution procedure has been proposed and explained through a numerical example. Study is concluded with managerial insights.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Supply chain coordination with flexible payment policy under effect of green technology investments

Shah

Patel

2023

YUGOSLAV J OPERATION

View full text Add to dashboard Cite

show abstract

“…Khan et al [29] analysed a setup with constant deterioration and variable demand pattern along with delayed payment. Recently, Shah et al [41] investigated the case where the goods deteriorate and their demand fluctuates with the selling price by considering the greening effect.…”

Section: Deteriorationmentioning

confidence: 99%

An inventory model with uncertain demand under preservation strategy for deteriorating items

Mahapatra¹,

DASGUPTA²,

Shaw³

et al. 2022

RAIRO-Oper. Res.

View full text Add to dashboard Cite

The capacity of a firm to accomplish its goals is financially compromised by degeneration of goods. A suitable preservation strategy to reduce degradation is a vital part of the managerial decisions. This study employs preservation technologies under uncertain demand to frame a ``continuous review inventory model'' with full back-ordering and the influence of promotional efforts. Survey of existing research finds few models with synchronised optimization over this entire scenario with all factors. The best values of the preservation cost and the two fractions of the cycle period when inventory is kept against the backorder part are determined to lower the total average cost. A mathematical model is built to incorporate these elements and numerical scenarios are presented to compare three possible approaches. In both crisp and fuzzy contexts, the sensitivity of the solution and decision variables concerning various inventory characteristics is investigated. Backorder duration is inversely proportional to the presence of preservation. The coefficient of preservation has a tipping point below which accepting the impact of undamped deterioration becomes more cost-effective. The total cost at the optimal point is more elastic to a reduction in base deterioration rate and relatively inelastic to its increase. Finally, this study proves that the preservation strategy converges over deterioration for the crisp case rather than the fuzzy case. It is expected the fuzzy case can provide better results, however, the crisp case provides lower total cost than the fuzzy case though it is slightly less efficient in per unit cost.

show abstract

“…Flexibility emerges as a key factor in maximizing profit in the business sector. Product demand is variable and flexible due to various realistic issues, making a fixed production rate risky for production industries [9]. Fixed production rates can lead to shortages during high demand or excessive waste during low demand, resulting in losses for the industry.…”

Section: Introductionmentioning

confidence: 99%

Optimal Decisions on Greenness, Carbon Emission Reductions, and Flexibility for Imperfect Production with Partial Outsourcing

Dey,

Seok,

Chung

2024

Mathematics

View full text Add to dashboard Cite

Global emphasis on sustainable development is widespread, with industries playing a pivotal role in advancing global sustainability within the business and retail sectors. Consumer awareness of environmental concerns, such as pollution, prompts a focus on product biodegradability and eco-friendliness. Consequently, customers are drawn to products with higher green credentials. This study delves into the effectiveness of green attributes in retail industries, exploring the optimization of profit through a variable production rate and variable unit production cost, considering the selling price and the demand dependent on the product’s green level. In the long run, production systems may shift to an “out-of-control” state, resulting in the random production of imperfect items that must be remanufactured to maintain the industry’s positive brand image. To mitigate the impact of defective items, the industry opts to partially outsource a percentage of items, preventing shortages. However, this complex retailing system generates a significant amount of carbon emissions. This study introduces investments aimed at reducing carbon emissions to address this issue. In contrast with the existing literature, a green-level-dependent unit raw material cost is considered here for variable unit production cost. Ultimately, this study seeks to maximize the overall system’s profit by optimizing the selling price, order quantity, production rate, green level, and carbon emission reduction investments. The classical optimization technique is utilized to obtain analytic optimum results for the decision variables and total profit. Special cases and sensitivity analyses illustrate the real-world applicability and impact of green levels. Numerical findings indicate that considering the product’s green-level-dependent demand and unit production rate is 22.44% more beneficial than nongreen products, partial outsourcing provides a 1.28% advantage, and flexibility in the production rate yields a 69.60% benefit over traditional systems without green elements. Additionally, technological investments to reduce carbon emissions result in a notable reduction of up to 4.53%.

show abstract

Greening efforts and deteriorating inventory policies for price-sensitive stock-dependent demand

Cited by 15 publications

References 22 publications

Supply chain coordination with flexible payment policy under effect of green technology investments

Supply chain coordination with flexible payment policy under effect of green technology investments

An inventory model with uncertain demand under preservation strategy for deteriorating items

Optimal Decisions on Greenness, Carbon Emission Reductions, and Flexibility for Imperfect Production with Partial Outsourcing

Contact Info

Product

Resources

About