Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives

Gautam, Prerna; Maheshwari, Sumit; Hasan, Ahmad; Kausar, Amrina; Jaggi, Chandra K.

doi:10.1051/ro/2021188

Cited by 33 publications

(8 citation statements)

References 56 publications

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“…The rate of production of these items or the total number of them can be decisive in EPQ inventory models. Guatam et al [16] determined the optimum production-inventory strategies for a flawed production system with price-reliant and advertisement demand under the rework option for defective items. Giri and Dash [17] derived an optimal batch shipment policy for a flawed production system with price, advertisement, and greensensitive demand.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainability Economic Production Quantity with Warm-Up Function for a Defective Production System

et al. 2023

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Inventory management seeks to improve manufacturing by contracting inventory costs in a similar fashion to raise efficiency and profit. One approach is to develop inventory management models according to actual production systems. Furthermore, governmental policies in many countries impose many regulations on firms to fulfill the growing demand for a reduction in carbon emissions. Warm-up is a familiar concept in industrial applications. It allows the manufacturing system to work at a higher level of productivity and efficiency, as well as decreasing the number of defective items and maintenance costs. Along with fewer poor-quality items, the system has less waste as scrap items entering the environment and also requires less energy and workload to focus on reworking. The economic production quantity (EPQ) problems with a warm-up as an input parameter have been studied in a few works recently. This paper proposes a production-inventory model which considers the warm-up period as a decision variable and investigates its impact on the total cost. Furthermore, the defective rate is a decreasing linear function related to the warm-up period’s length. The production-inventory model takes into account the carbon emission tax policy. The main aim of this research is to jointly optimize both the length of the warm-up period and the production cycle in order to minimize the total cost of the production-inventory system and, therefore, reduce emitted carbon emissions. The comparison of tax prices and the effect of the proper warm-up period on the amount of carbon emissions are discussed in the sensitivity analysis.

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Section: Literature Reviewmentioning

confidence: 99%

Sustainability Economic Production Quantity with Warm-Up Function for a Defective Production System

et al. 2023

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“…Then, Khanna et al [20] considered non-linear price-dependent demand for an inventory model with inspection error. In this direction, Gautam et al [12] developed an inventory model with price-dependent demand for defective items.…”

Section: Literature Reviewmentioning

confidence: 99%

A profit maximization single item inventory problem considering deterioration during carrying for price dependent demand and preservation technology investment

Debnath

Mahata

2022

RAIRO-Oper. Res.

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This paper addresses a single item two-level supply chain inventory model considering deterioration during carrying of deteriorating item from a supplier’s warehouse to a retailer’s warehouse as well as deterioration in the retailer’s warehouse. The model assumes preservation technology in the retailer’s warehouse to prevent the rate of deterioration. An upper limit for the preservation technology investment has been set as a constraint to the model. The model maximizes the retailer’s profit per unit time, simultaneously calculated optimal order quantity, optimal value of replenishment, optimal selling price. A price dependent demand and storage-time dependent holding cost is considered to develop the model. Some theorems are proven to get optimal values of the total cost. A numerical problem is workout as per the developed algorithm and with the help of MATLAB software to study the applicability of our theoretical results.

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“…They observed that customers are encouraged to acquire things when rebate marketing is used. According to Gautam et al (2022), manufacturers should invest more in advertisement in order to generate more profit and to increase demand. Hence, taking into account demand that is dependent on sales team efforts and selling price is more feasible in the case of production-inventory modelling.…”

Section: Literature Reviewmentioning

confidence: 99%

A single-stage cleaner production system with waste management, reworking, preservation technology, and partial backlogging under inflation

Bhatnagar¹,

Kumar²,

Yadav³

2022

RAIRO-Oper. Res.

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Waste management and reworking are very crucial issues in a cleaner production system. The adaptation of the reservation mechanism in inventory control is also a key aspect from an economic and environmental point of view. In the current study, an inventory model for a cleaner production system is modelled taking into consideration inflation and all these practical concerns. The deterioration process takes place in the production system. In the model, market demand is considered as sales team efforts and selling price dependent. Here, the rate of production along with the unit production cost is taken as variables. An investment in preservation technology is made with the goal to lower the percentage of defective products. Further, partial backordering is considered. In order to demonstrate the model, a numerical example is provided. A Hessian matrix is used to establish the concavity of the objective function. A theoretical result is provided to obtain the concavity of the objective function. Sensitivity analysis along with managerial implications is also provided in the manuscript. Results indicate that by implementing high-efficiency preservation technology, the detrimental effects of deterioration on profit can be mitigated. Due to preservation technology, 1.6 percent rise in profit is observed. Thus, the selection of the right preservation technology is crucial for both financial and environmental sustainability. In addition to this, higher reworking rates and capital investment in quality improvement result in high profit for the system.

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Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives

Cited by 33 publications

References 56 publications

Sustainability Economic Production Quantity with Warm-Up Function for a Defective Production System

Sustainability Economic Production Quantity with Warm-Up Function for a Defective Production System

A profit maximization single item inventory problem considering deterioration during carrying for price dependent demand and preservation technology investment

A single-stage cleaner production system with waste management, reworking, preservation technology, and partial backlogging under inflation

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