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.