A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages
Date
2021
Authors
AlArjani, Ali
Miah, Md. Maniruzzaman
Uddin, Sharif
Mashud, Abu Hashan Md.
Wee, Hui-Ming
Sana, Shib Sankar
Srivastava, H.M.
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Risk and Financial Management
Abstract
Recycling of products has a great impact on contemporary sustainable business strategies.
In this study, a sustainable recycling process in a production-inventory model for an imperfect production
system with a fixed ratio of recyclable defective products is introduced. The piecewise constant
demand rates of the non-defective items are considered under production run-time, production
off-time with positive stock, and production off-time with shortages under varying conditions. Based
on the production process, two cases are studied using this model. The first case does not consider
recycling processes, while the second case picks up all defective items before sending these items to
recycling during the production off-time; the recycled items are added to the main inventory. The aim
of this study is to minimize the total cost and identify the optimal order quantity. The manufacturing
process with the recycling process provides a better result compared to without recycling in the
first case. Some theoretical derivations are developed to enunciate the objective function using the
classical optimization technique. To validate the proposed study, sensitivity analysis is performed,
and numerical examples are given. Finally, some managerial insights and the scope of future research
are provided.
Description
Keywords
economic recycle quantity (ERQ), imperfect production, inventory, sustainable recycling shortages
Citation
AlArjani, A., Miah, M. M., Uddin, M. S., Mashud, A. H. M., Wee, H., Sana, S. S., & Srivastava, H. M. (2021). A Sustainable Economic Recycle Quantity Model for Imperfect Production System with Shortages. Journal of Risk and Financial Management, 14(4), 1- 21. https://doi.org/10.3390/jrfm14040173.