Inventory and pricing decisions for an imperfect production system with quality inspection, rework, and carbon-emissions. (English) Zbl 1474.90017
Summary: The present paper considers the effect of imperfect quality items on a production system which further undergoes inspection and rework. The demand of the product is price reliant. Two situations to handle the imperfect items are analyzed: selling them at a reduced price and reworking them. The demand is assumed to meet with perfect products in either case. Further, the study incorporates the carbon-emissions borne during production of goods and their holding in the inventory system. The model aims at maximizing the profit function by jointly optimizing mark-up price and production quantity. To demonstrate model characteristics, numerical and sensitivity analysis are also presented.
MSC:
| 90B05 | Inventory, storage, reservoirs |
| 90B30 | Production models |
| 90B25 | Reliability, availability, maintenance, inspection in operations research |
| 91B76 | Environmental economics (natural resource models, harvesting, pollution, etc.) |
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