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Effects of Preservation Technology Investment on Waste Generation in a Two-Echelon Supply Chain Model

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  • Mehran Ullah

    (Department of Industrial & Management Engineering, Hanyang University, Ansan Gyeonggi-do 155 88, Korea)

  • Biswajit Sarkar

    (Department of Industrial & Management Engineering, Hanyang University, Ansan Gyeonggi-do 155 88, Korea)

  • Iqra Asghar

    (Department of Industrial & Management Engineering, Hanyang University, Ansan Gyeonggi-do 155 88, Korea)

Abstract

This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model.

Suggested Citation

  • Mehran Ullah & Biswajit Sarkar & Iqra Asghar, 2019. "Effects of Preservation Technology Investment on Waste Generation in a Two-Echelon Supply Chain Model," Mathematics, MDPI, vol. 7(2), pages 1-20, February.
    • Handle: RePEc:gam:jmathe:v:7:y:2019:i:2:p:189-:d:206632
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    References listed on IDEAS

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    Cited by:

    1. Ata Allah Taleizadeh & Masoumeh Sadat Babaei & Shib Sankar Sana & Biswajit Sarkar, 2019. "Pricing Decision within an Inventory Model for Complementary and Substitutable Products," Mathematics, MDPI, vol. 7(7), pages 1-22, June.
    2. Mrudul Y. Jani & Manish R. Betheja & Urmila Chaudhari & Biswajit Sarkar, 2021. "Optimal Investment in Preservation Technology for Variable Demand under Trade-Credit and Shortages," Mathematics, MDPI, vol. 9(11), pages 1-12, June.
    3. Monica Aureliana Petcu & Liliana Ionescu-Feleaga & Bogdan-Ștefan Ionescu & Dumitru-Florin Moise, 2023. "A Decade for the Mathematics : Bibliometric Analysis of Mathematical Modeling in Economics, Ecology, and Environment," Mathematics, MDPI, vol. 11(2), pages 1-30, January.

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