Abstract
This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model.
Original language | English |
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Article number | 189 |
Journal | Mathematics |
Volume | 7 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2019 Jan 1 |
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All Science Journal Classification (ASJC) codes
- Mathematics(all)
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Effects of preservation technology investment on waste generation in a two-echelon supply chain model. / Ullah, Mehran; Sarkar, Biswajit; Asghar, Iqra.
In: Mathematics, Vol. 7, No. 2, 189, 01.01.2019.Research output: Contribution to journal › Article
TY - JOUR
T1 - Effects of preservation technology investment on waste generation in a two-echelon supply chain model
AU - Ullah, Mehran
AU - Sarkar, Biswajit
AU - Asghar, Iqra
PY - 2019/1/1
Y1 - 2019/1/1
N2 - This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model.
AB - This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model.
UR - http://www.scopus.com/inward/record.url?scp=85066844616&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85066844616&partnerID=8YFLogxK
U2 - 10.3390/math7020189
DO - 10.3390/math7020189
M3 - Article
AN - SCOPUS:85066844616
VL - 7
JO - Mathematics
JF - Mathematics
SN - 2227-7390
IS - 2
M1 - 189
ER -