A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions
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Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh
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Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta 55281, Indonesia
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Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600 UKM, Selangor, Malaysia
*
Authors to whom correspondence should be addressed.
Mathematics 2020, 8(11), 2049; https://doi.org/10.3390/math8112049
Received: 7 October 2020
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Revised: 13 November 2020
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Accepted: 14 November 2020
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Published: 17 November 2020
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 (CO2) 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 CO2, are produced. Government regulations on CO2 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.
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Keywords:
investment optimization; green technology; preservation technology; CO2; imperfect item; deterioration
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MDPI and ACS Style
Mashud, A.H.M.; Roy, D.; Daryanto, Y.; Ali, M.H. A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions. Mathematics 2020, 8, 2049. https://doi.org/10.3390/math8112049
AMA Style
Mashud AHM, Roy D, Daryanto Y, Ali MH. A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions. Mathematics. 2020; 8(11):2049. https://doi.org/10.3390/math8112049
Chicago/Turabian StyleMashud, Abu H.M., Dipa Roy, Yosef Daryanto, and Mohd H. Ali. 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions" Mathematics 8, no. 11: 2049. https://doi.org/10.3390/math8112049
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