Imperfect Production Inventory Under a Multi-Production Cycle for Non-deteriorating Items with Carbon Tax and Green Investment
摘要
In small manufacturing sectors, the storage of finished products is an essential and inevitable part of inventory management. In reality, the holding space is usually finite and due to this, a risk of early shortage is always there that could reduce the profit gain by the manufacturer. In this paper, an imperfect production inventory model is proposed to study the impact of the multi-production cycle on the profit earned for non-deteriorating items. Carbon tax is considered in the model and optimal green investment is obtained to reduce the carbon tax in both the holding and production. The formulated model is analyzed through numerical examples along with the sensitivity analysis of the parameters and managerial implications.