Controllable Energy Consumption in a Sustainable Smart Manufacturing Model Considering Superior Service, Flexible Demand, and Partial Outsourcing

Abstract

The waste of energy in the present era is a dangerous signal for the future. All categories of consumers should come forward to moderate energy use and prevent wastage. This study focuses on a controllable energy consumption-based sustainable inventory model incorporating variable production rates, improved service, partial outsourcing planning, defective production, restoring reworkable items, disposing of non-reworkable items, and energy-saving steps. Reducing unusual energy consumption in production systems reduces carbon emissions and maximizes the system’s profit. An improved service level attracts customers, increases demand, and improves product reputation. Separate holding costs of reworked, defective, and perfect-quality items are considered for every lot delivered and reworked. The demand in the market is related to price and service. A traditional optimization technique examines the global optimization for the profit function and decision variables. Numerical illustrations as well as concave 3D graphs validate the analytical results and provide a sensitivity analysis for different parameters. The model is validated through special cases and comparison graphs.

Keywords

• flexible production rate
• outsourcing
• service level
• rework
• energy saving
• variable demand