<p>Nowadays, decision-makers of supply chain are more focused towards integrating sustainability issue with efficient energy consumptions especially for unreliable manufacturing process. In current study, two-echelon supply chain inventory model is considered considering flexible production process. In the model, production rate is considered as decision variables. Further, supply chain consists single retailer and single manufacturer. In the model, carbon emissions cost and energy cost are calculated because of ordering the product, production process, screening mechanism, setup preparation for manufacturing process, carrying the inventory in stock. Demand rate is considered as function of price and sales team's efforts. Profit expression of the proposed two-echelon system is optimized by considered production rate, order quantity, and maximum shortage level as decision variables. Concavity of total profit function of two-echelon system is derived analytically. Numerical illustration is provided for two-echelon system. Finally, sensitivity analysis along with managerial insights are presented for two-echelon system to illustrate the proposed study.</p>

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Integrated inventory model considering volume flexibility, price and advertisement dependent demand, and screening process

  • Praveen Kumar,
  • Madan Mohan Gupta,
  • Dharmendra Yadav

摘要

Nowadays, decision-makers of supply chain are more focused towards integrating sustainability issue with efficient energy consumptions especially for unreliable manufacturing process. In current study, two-echelon supply chain inventory model is considered considering flexible production process. In the model, production rate is considered as decision variables. Further, supply chain consists single retailer and single manufacturer. In the model, carbon emissions cost and energy cost are calculated because of ordering the product, production process, screening mechanism, setup preparation for manufacturing process, carrying the inventory in stock. Demand rate is considered as function of price and sales team's efforts. Profit expression of the proposed two-echelon system is optimized by considered production rate, order quantity, and maximum shortage level as decision variables. Concavity of total profit function of two-echelon system is derived analytically. Numerical illustration is provided for two-echelon system. Finally, sensitivity analysis along with managerial insights are presented for two-echelon system to illustrate the proposed study.