Sustainable green production model considering variable demand, partial outsourcing, and rework

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Abstract

Social activities, economic benefits, and environmental friendly approach are very much essential for a sustainable production system. This is widely observed during the Covid-19 pandemic situation. The demand for essential goods in the business sector is always changing due to different unavoidable situations. The proposed study introduces a variable demand for controlling the fluctuating demand. However, a reworking of produced imperfect products makes the production model more profitable. Partial outsourcing of the good quality products has made the production system more popular and profitable. Separate holding cost for the reworked and produced products are very helpful idea for the proposed model. Moreover, consumption of energy during various purpose are considered. Separate green investment make the model more sustainable and eco-friendly. The main focus of the model is to find the maximum profit through considering optimum value of lot size quantity, average selling price, and green investment. The classical optimization technique is utilized here for optimizing the solution theoretically. The use of concave 3D graphs, different examples, and sensitivity analyses are considered here. Furthermore, managerial insights from this study can be used for industry improvement.

Keywords

imperfect production / remanufacturing / green investment / outsourcing / sustainability

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