Volume 56, Number 1, January-February 2022
|Page(s)||183 - 197|
|Published online||07 February 2022|
Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives
Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, Delhi 110007, India
2 Department of Management Studies, Shaheed Sukhdev College of Business Studies, University of Delhi, Delhi 110089, India
* Corresponding author: email@example.com
Accepted: 16 December 2021
Every industrial sector emits carbon emissions during production, which is always a major concern for environmental practitioners. To resolve this, innovative and smart ways are required that are not only cost-effective but also environmentally savvy. Moreover, the production processes are also prone to various imperfections, and thus the production of defectives is quite pragmatic. The handling of such defective products varies from industry to industry and type of products. The present study constructs an inventory model to handle the defective products via a proficient rework strategy that makes the product fit to be sold at the primary price. Here, the demand for the product is assumed to be dependent on the selling price and advertisements. The model also considers the energy usage during the production and the cost of carbon emissions while optimizing the production batch size and selling price. Optimality is proved graphically by using the software Mathematica 11.3.0. A comprehensive sensitivity analysis for all the parameters is performed to impart managerial insights and robustness to the model.
Mathematics Subject Classification: 90B05 / 90B30
Key words: Inventory / production / energy / pricing / optimization
© The authors. Published by EDP Sciences, ROADEF, SMAI 2022
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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