An Inventory Model for Growing Items with Imperfect Quality When the Demand Is Price Sensitive under Carbon Emissions and Shortages (original) (raw)
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Mathematics
This research develops an optimization model for growing items in a supply chain with three stages: farmer, processor, and retailer while considering imperfect quality, mortality, shortages with full backordering, and carbon emissions. In the farmer stage, during the growing period, not all articles survive until the end of the period, so a density function of the probability of survival and death of the growing articles is taken into account. Moreover, it is considered imperfect quality in the retailer’s stage because as the supply chain goes down, there exists a greater probability of product defects. Here, the end customer (consumer) can detect poor-quality aspects such as poorly cut, poorly packed, expired products, etc. An inventory model that maximizes the expected total profit is formulated for a single type of growing items with price-dependent polynomial demand. An algorithm is developed to solve the optimization problem generating the optimal solution for order quantity, b...
A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions
Mathematics, 2020
Maintaining product quality and environmental performance are emerging concerns in modern competitive and transparent businesses. Many retailers separate perfect products from imperfect ones to ensure product quality and endeavor to achieve carbon dioxide (CO2) reduction through green technology investments and sustainable inventory planning. Product deterioration often badly hampers the retailing business; hence, suitable preservation technologies are used. In this study, we examined the optimization model of the selling price, investment, and replenishment planning to maximize the total profit. The proposed model considered the effect of a greater deterioration rate and discount price of imperfect products. Due to the high uncertainty in demand, a realistic holding cost was deliberated with a variable and constant part. Every time the retailer transports purchased items, greenhouse gases (GHGs), including CO2, are produced. Government regulations on CO2 minimization and customer a...
Recent Trends in Sustainable Inventory Models: A Literature Review
Sustainability, 2021
Greenhouse gas emissions are increasing global warming significantly, hence the need for manufacturing companies to include sustainability strategies in their supply chain to reduce emissions generated by their operations. This article aims to provide a systematic literature review on integrating sustainability issues into inventory management models to support scholars and practitioners in decision-making processes according to their market requirements. Thus, this paper discusses the most relevant papers published on inventory management topics that consider environmental criteria such as greenhouse gas emissions, ecological quality controls, unsold inventory, and fixed carbon costs. Therefore, we have extended the literature review to incorporate sustainability considerations in inventory models involving an industry’s environmental and social effects. As a result, in this article, a detailed analysis of the existing literature and related weaknesses provide meaningful discussion...
Single Vendor-Buyer Integrated Inventory Model for Deteriorating Items Considering Carbon Emission
2017
In this study, we present an integrated single vendor-buyer inventory model considering deterioration and carbon emission simultaneously. We focus on the emissions from warehousing, transport activity as well as emission from the disposal of the deteriorated items. A numerical example is developed to illustrate the proposed solution procedure. Computational results indicate that by incorporating carbon emissions into the integrated inventory model, we can reduce the total carbon emission and slightly reduce the total supply chain cost. We also show that the integrated inventory model has significantly reduced the total cost and total carbon emissions as compared to the result when the decision is made solely from the buyer’s perspective.
Green Finance, 2021
Growing inventory is the set of commodities whose level enhances during the stocking period. This kind of product is normally seen in the poultry industry and livestock farming. In this model, the live newborn is considered to be the initial inventory of the retailer. These are procured and fed until they grow to an ideal weight during the breeding period. Afterward, these are slaughtered and converted to deteriorating items prone to the customer's demand during the consumption period. The poultry industry is responsible for greenhouse gas emissions during feeding, farming, slaughtering, and handling. Consequently, the retailers are enforced to make efforts to reduce the emission which also affects the inventory demeanor. Therefore, the effect of the carbon emissions from the poultry industry has been investigated here. Generally, customers prefer food over the preserved items so shortages are permitted which has been assumed here with partial backlogging. The study has been carried out to investigate the optimum breeding period and optimum livestock inventory. A numerical example and illustrations validate the analytical results. Lastly, a sensitivity analysis has been provided concerning some key parameters.
2021
Department of Mathematics, Holy Cross College (Autonomous), Affiliated to Bharathidasan University, Tiruchirappalli-620002, India. Abstract: Mitigating carbon emission in inventory has become an important issue for companies. Nowadays, companies are looking for solutions to reduce the carbon emission due to carbon policies imposed by various regulatory bodies. Not only for regulations, ISO certification, business competitive and customer satisfaction also encourage organizations to adopt green practices in their supply chain. In this paper, we develop a new sustainable inventory model considering carbon emission function which includes different sources of pollution. A mathematical model is to determine the optimal order quantity and total cost of this system. A numerical example is illustrated to present the proposed model.
Vendor-managed inventory (VMI) deteriorating item model taking into account carbon emissions
Scientia Iranica
This research investigates the primary actions that generate carbon supply chain emission generated by the transport of deteriorating products. This study applies a vendormanaged inventory (VMI) model that considers deteriorating items with a single-setupsingle-delivery (SSSD) system, and also a single-setup-multiple-delivery (SSMD) system. This study's managerial insights can help both researchers and businesses make inventory management decisions that reduce the total cost of processing these deteriorating commodities, as well as the total cost of carbon emissions. A numerical example optimizing the order quantity and order frequency for each manufacturing cycle is shown. Findings from this research can assist businesses in discovering an efficient inventory management approach that is crucial to lowering carbon emissions, particularly for deteriorating goods.
Eco-conservational manufacturing inventory framework for deteriorating and defective products
2ND INTERNATIONAL CONFERENCE ON MATHEMATICAL TECHNIQUES AND APPLICATIONS: ICMTA2021
The framework construction of inventory management is dynamic in nature as it is influenced by the growing inexorableness of the stakeholders. The modeling of inventory control is subjected to certain environmental and quality sustenance restraints. The end product is the resultant of either processing of raw materials or assembling of semi-finished products but existence of considerate proportion of deteriorating and defective items is inevitable but controllable by scrutinizing and selecting the feasible methods of treatment and disposal. As environmental costing is made mandatory in business accounting, environmental costs should be reflected in inventory model and the proposal of eco-conservational inventory frameworks are highly essential at this crucial time of global warming as a reflection of industrial responsibilities towards it. The model that is put forwarded in this paper encompasses various quality promotion and environmental costs parameters and this lays a framework for devising extended versions of eco related inventory models suiting the demands of the environment.