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Energy considerations for the economic production quantity and the joint economic lot sizing

Author

Listed:
  • Lucio Enrico Zavanella

    (Universita degli Studi di Brescia)

  • Beatrice Marchi

    (Universita degli Studi di Brescia)

  • Simone Zanoni

    (Universita degli Studi di Brescia)

  • Ivan Ferretti

    (Universita degli Studi di Brescia)

Abstract

The increased awareness on sustainability, along with several governments’ actions for setting greenhouse gas restrictions, has recently generated a relevant pressure on industries towards the improvement of environmental performances. Among the several aspects, companies’ focus is mainly on energy use, firstly for its relevant and direct impact on the total cost, and secondly for its environmental linkage. The aim of this contribution is the integration of the energy-related objectives in lot sizing, extending the economic production quantity from the manufacturer point of view and extending the joint economic lot size model from the single-vendor single-buyer supply chain perspective, so as to show how this approach can lead to a more sustainable production process. The present work proposes a novel framework for dimensioning production lot sizes, based on both economic and energy implications in processes characterized by a variable production rate. Furthermore, an increased attention for the sustainability of the production–inventory system is introduced by considering energy as a key factor in the lot sizing problem, due to the close link between energy and environmental concerns. A traditional agreement and a vendor managed inventory with consignment stock for the joint economic lot sizing have been investigated explicitly formulating energy in production aspects. A numerical example is also presented to compare the behaviour of the models.

Suggested Citation

  • Lucio Enrico Zavanella & Beatrice Marchi & Simone Zanoni & Ivan Ferretti, 2019. "Energy considerations for the economic production quantity and the joint economic lot sizing," Journal of Business Economics, Springer, vol. 89(7), pages 845-865, September.
    • Handle: RePEc:spr:jbecon:v:89:y:2019:i:7:d:10.1007_s11573-019-00933-6
    DOI: 10.1007/s11573-019-00933-6
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    References listed on IDEAS

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    Cited by:

    1. Beatrice Marchi & Simone Zanoni & Ivan Ferretti, 2019. "Energy Efficiency Investments in Industry with Uncertain Demand Rate: Effects on the Specific Energy Consumption," Energies, MDPI, vol. 13(1), pages 1-14, December.
    2. Ivan Ferretti & Matteo Camparada & Lucio Enrico Zavanella, 2022. "Queuing Theory-Based Design Methods for the Definition of Power Requirements in Manufacturing Systems," Energies, MDPI, vol. 15(20), pages 1-14, October.
    3. Jia-Liang Pan & Chui-Yu Chiu & Kun-Shan Wu & Chih-Te Yang & Yen-Wen Wang, 2021. "Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain," Energies, MDPI, vol. 14(22), pages 1-20, November.
    4. Beatrice Marchi & Simone Zanoni & Marco Pasetti, 2019. "Multi-Period Newsvendor Problem for the Management of Battery Energy Storage Systems in Support of Distributed Generation," Energies, MDPI, vol. 12(23), pages 1-13, December.
    5. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    6. Beatrice Marchi & Simone Zanoni & Mohamad Y. Jaber, 2020. "Energy Implications of Lot Sizing Decisions in Refrigerated Warehouses," Energies, MDPI, vol. 13(7), pages 1-13, April.

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    More about this item

    Keywords

    Energy; Lot sizing; Sustainability; Production–inventory system;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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