Cleaner Logistics and Supply Chain (Jul 2022)
A cleaner EPQ inventory model involving synchronous and asynchronous rework process with green technology investment
Abstract
The amount of carbon emission in the atmosphere continues to grow, and production, storage and transportation are major contributors that are repeatedly unnoticed when it comes to solving the problem. A carbon levy and cap EPQ model has been explored in this study for a controlled carbon emission in view of cleaner production under imperfect production processes where a fraction of the products is faulty. The model incorporates emissions from transportation, production, and storage activities, which are meant to be decreased by green investment. The manufacturer employs a rework approach to rectify the faulty products. Flexible rework allows the manufacturer to choose the rework rate, which can differ from the manufacturing rate, as well as the process of rework, which can be asynchronous or synchronous. A linear rework cost function of the rework rate is assumed. We sought to obtain the lowest cost with respect to optimal lot size, and backorder under the effect of controlling carbon emissions by applying the exponential form of green investment. Keeping these in mind, several mathematical models derived for various rework rate and rework process assumptions with the objective emphases on gaining a trade-off between cost and emissions, thereby finding the optimal production-distribution inventory strategy and an appropriate sustainable plan for handling both synchronous and asynchronous rework process. We show a constrained non-linear programme (NLP) and derive a calculus optimization technique to solve it. An iterative solution technique is used to arrive at the optimal decisions, which are shown analytically and numerically. The results validate the impacts of controlled carbon emissions on the production strategies. The findings mainly suggest that increasing the carbon levy reduces emissions. The firm has more options to decrease emissions caused by industrial activity with the help of green technologies. Although green technology has a higher upfront cost, the producer will reap the advantages of lower emissions.
