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A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

Author

Listed:
  • Abu Hashan Md Mashud

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Dipa Roy

    (Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh)

  • Yosef Daryanto

    (Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta 55281, Indonesia)

  • Mohd Helmi Ali

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600 UKM, Selangor, Malaysia)

Abstract

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 (CO 2 ) 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 CO 2 , are produced. Government regulations on CO 2 minimization and customer awareness for greener products stimulate retailers to invest in energy-efficient green technology. This study simultaneously showed a harmonious relationship among the attributes of preservation technology, green technology investment, and discounts on defective items. Theoretical derivations were performed with numerical analysis.

Suggested Citation

  • Abu Hashan Md Mashud & Dipa Roy & Yosef Daryanto & Mohd Helmi Ali, 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions," Mathematics, MDPI, vol. 8(11), pages 1-21, November.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:11:p:2049-:d:446520
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    References listed on IDEAS

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    Cited by:

    1. G. Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "A Sustainable Green Inventory System with Novel Eco-Friendly Demand Incorporating Partial Backlogging under Fuzziness," Sustainability, MDPI, vol. 14(15), pages 1-20, July.
    2. Yu-Lan Wang & Ming-Li Chen & Peterson Julian, 2022. "Maximum-Profit Inventory Model with Generalized Deterioration Rate," Mathematics, MDPI, vol. 10(17), pages 1-14, September.
    3. Surendra Vikram Singh Padiyar & Vandana & Shiv Raj Singh & Dipti Singh & Mitali Sarkar & Bikash Koli Dey & Biswajit Sarkar, 2022. "Three-Echelon Supply Chain Management with Deteriorated Products under the Effect of Inflation," Mathematics, MDPI, vol. 11(1), pages 1-19, December.
    4. Nabajyoti Bhattacharjee & Nabendu Sen, 2022. "A sustainable production inventory model for profit maximization under optimum raw material input rate during production," OPSEARCH, Springer;Operational Research Society of India, vol. 59(2), pages 667-693, June.

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