Effects of multiple prepayments and green investment on an EPQ model

Paul, Asim; Pervin, Magfura; Pinto, Renan Vicente; Roy, Sankar Kumar; Maculan, Nelson; Weber, Gerhard

doi:10.3934/jimo.2022234

Cited by 11 publications

(3 citation statements)

References 39 publications

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“…However, there are some limitations associated with the suggested model. This model lags to notice some important issues like dual channel policy with Stackelberg game (Barman et al [68]), sustainability with non-instantaneous deterioration for reducing cost (Pervin et al [69]), effects of multiple prepayments to increase the production (Paul et al [70]), an optimal balance among the carbon emissions, product deterioration and reduction in ordering cost (Mashud et al [71]), impacts of investment of preservation policy to increase the production (Barman et al [72]), remanufacturing of defective items produced from imperfect production (Haque et al…”

Section: Discussionmentioning

confidence: 99%

A sustainable production inventory model for two deteriorating complementary products under preservation technology and carbon cap regulation

Haque,

Pervin,

Mondal

2024

Preprint

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Complementary items are very important for any business organization because it can increase the sells as well as profit of the company. Bundle item together can attract the customers. So, a sustainable production inventory system for two deteriorating complementary items is designed for optimal lot sizing and optimal number of deliveries for both decentralised and centralised supply chain coordination. To protect items from deterioration, both the supply chain members applied the technology for preservation. Carbon (mainly carbon dioxide) emits from various inventory operations such as production, setting up, holding. In this production supply chain, carbon cap-and-trade policy is used to lessen that emission. Due to market demand fluctuation, retailer may face shortages and based on these, two models for the retailer are designed for zero ending case and shortage case. Consumer waiting time dependent partially backlogging shortage are applied to the cover the shortage for the case of the retailer. Here, the manufacturer generates the entire production batch in a single operation but distributes it to the retailer in multiple shipments of fixed quantities at constant time intervals. The effect of decision variables on profit function for both centralized and decentralized system are derived. Finally, numerical explanations are illustrated to find the impact of carbon emission in different pricing systems. It is concluded from the numerical results that the profit function is totally dependent on degree of complementarity of the product. Sensitivity analysis is performed to find the stability of the proposed model.

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Section: Discussionmentioning

confidence: 99%

A sustainable production inventory model for two deteriorating complementary products under preservation technology and carbon cap regulation

Haque,

Pervin,

Mondal

2024

Preprint

Self Cite

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“…Karim et al [15] conducted a systematic literature review on the sustainable EPQ model including carbon emissions and product recycling. Recently, to cope with extreme climate issues, Paul et al [16] formulated an (EPQ) model with an investment in green operations and deterioration. Although low-carbon investment issues are beginning to be considered in EPQ models, there is no production-inventory-related literature to reduce carbon emissions from equipment maintenance to reduce defect rates.…”

Section: Economic Production Quantity Models With Carbon Emissionsmentioning

confidence: 99%

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

Chen,

Lu,

Hsu

et al. 2024

Processes

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The equipment in a factory will gradually deteriorate during production, leading to the production of defective products. Without appropriate maintenance, the defect rate will increase over time. Consequently, the production cost will rise, the inventory quality will be affected, the profit will decrease, and the risk of carbon emissions will increase, leading to more customer complaints and damaging the corporate image. In addition to focusing on preventive maintenance to ensure the quality of products, companies should also take carbon emissions into consideration. Furthermore, the frequency of maintenance must be carefully considered, as both carbon emissions and maintenance costs will increase if the frequency is too high; conversely, if the maintenance frequency is too low or non-existent, the defect rate may increase cumulatively, or production may be suspended due to equipment failure. Therefore, this research explores preventive maintenance and inventory management issues within an imperfect production system and develops an extended economic production quantity model that incorporates defective products as well as taking carbon tax and preventive maintenance into consideration. The main purpose is to determine the optimal maintenance frequency, production, and replenishment cycle length, so as to maximize the total profit under the carbon tax policy. This study demonstrates a computing process with relatively impractical product data based on the actual business situation of a disposable diaper manufacturer. Furthermore, a sensitivity analysis is implemented to the model parameters in the proposed model. The managemental insights are illustrated based on the results of theoretical analysis to provide a reference to policy makers during decision making, hence, to secure the sustainability and green transitions of corporates. The results of this study not only help to reduce environmental impact but can also improve the competitiveness and sustainable development of enterprises.

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“…Two-warehouse inventory models for stock and price-dependent demand and time-varying demand with trade credit facilities were developed by Panda et al [33] and Kumar et al [16], respectively. For some similar works on inventories with trade credit facilities, one may refer to the works of [21], [35], [34], [39], and [45].…”

mentioning

confidence: 99%

An inventory model under power pattern demand having trade credit facility and preservation technology investment with completely backlogged shortages

Patra,

Paikray,

Dutta

2024

JIMO

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In real-world inventory problems, the deterioration rate is usually treated as an uncontrolled factor. However, by adopting certain preservation techniques, such deterioration rate can be controlled up to a desired level. Moreover, in certain business affairs, the supplier also provides a permissible delay in payment to encourage the vendors to have further sales. In this paper, we develop an inventory model that considers the power pattern demand under trade credit, permissible completely backlogged shortages, and suitable investment in preservation technology. Additionally, to make the model more realistic, we apply the learning effect to the holding costs. We develop the mathematical model of the problem and its solving policy in both crisp and fuzzy environments. The main purpose of the model is to obtain the optimum preservation technology-based cost and cycle time that maximize the overall profit. Furthermore, to validate our findings, we consider numerical examples and subsequently demonstrate the concavity of the profit function via Mathematica 11.1.1 software. Finally, we study the sensitivity analysis and accordingly present several managerial insights for the benefit of inventory managers.

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Effects of multiple prepayments and green investment on an EPQ model

Cited by 11 publications

References 39 publications

A sustainable production inventory model for two deteriorating complementary products under preservation technology and carbon cap regulation

A sustainable production inventory model for two deteriorating complementary products under preservation technology and carbon cap regulation

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

An inventory model under power pattern demand having trade credit facility and preservation technology investment with completely backlogged shortages

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