Inventory and pricing decisions for an imperfect production system with quality inspection, rework, and carbon-emissions

Abstract

The present paper considers the effect of imperfect quality items on a production system which further undergoes inspection and rework. The demand of the product is price reliant. Two situations to handle the imperfect items are analyzed: selling them at a reduced price and reworking them. The demand is assumed to meet with perfect products in either case. Further, the study incorporates the carbon-emissions borne during production of goods and their holding in the inventory system. The model aims at maximizing the profit function by jointly optimizing mark-up price and production quantity. To demonstrate model characteristics, numerical and sensitivity analysis are also presented.

A Fuzzy type Backlogging Production Inventory Model for Perishable Items with Time Dependent Exponential Demand Rate

“…Khanna et al 25 worked on inventory and pricing decisions for an imperfect production with quality inspection, rework and carbon emission. Sen and Saha 26 developed an inventory model for deteriorating items with negative exponential demand, probabilistic deterioration and fuzzy lead time under partial backlogging.…”