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.
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DOI : 10.1051/ro/2021188
Keywords: Inventory, production, energy, pricing, optimization
@article{RO_2022__56_1_183_0,
author = {Gautam, Prerna and Maheshwari, Sumit and Hasan, Ahmad and Kausar, Amrina and Jaggi, Chandra K.},
title = {Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives},
journal = {RAIRO. Operations Research},
pages = {183--197},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {1},
doi = {10.1051/ro/2021188},
mrnumber = {4376291},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021188/}
}
TY - JOUR AU - Gautam, Prerna AU - Maheshwari, Sumit AU - Hasan, Ahmad AU - Kausar, Amrina AU - Jaggi, Chandra K. TI - Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives JO - RAIRO. Operations Research PY - 2022 SP - 183 EP - 197 VL - 56 IS - 1 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021188/ DO - 10.1051/ro/2021188 LA - en ID - RO_2022__56_1_183_0 ER -
%0 Journal Article %A Gautam, Prerna %A Maheshwari, Sumit %A Hasan, Ahmad %A Kausar, Amrina %A Jaggi, Chandra K. %T Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives %J RAIRO. Operations Research %D 2022 %P 183-197 %V 56 %N 1 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021188/ %R 10.1051/ro/2021188 %G en %F RO_2022__56_1_183_0
Gautam, Prerna; Maheshwari, Sumit; Hasan, Ahmad; Kausar, Amrina; Jaggi, Chandra K. Optimal inventory strategies for an imperfect production system with advertisement and price reliant demand under rework option for defectives. RAIRO. Operations Research, Tome 56 (2022) no. 1, pp. 183-197. doi: 10.1051/ro/2021188
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