An EPQ Inventory Model with Green Techology and Multi Variable Demand under the Shortages and Volume Flexibility

Abstract

A hectic life makes fitness difficult, especially if you consume chemicals. Knowing this fact, we have analyzed an economic production inventory model for deteriorating items. The manufacturing model is developed with green technology in order to produce eco-friendly products. The volume flexibility is taken into account. Multivariable demand rate has been taken into consideration which is dependent on selling price, green degree and green preferences of the customer. In response to the growing green preferences of customers, manufacturers should increase their investment in green technology. It is allowed to have shortages and all backlogs are fully backlogged. A closed-form solution has been provided for the optimal values of the green degree and replenishment cycle. In addition to analyzing the volatility of the system numerically and sensitivity-wise, the model can also provide some managerial insights in favor of the manufacturer to maintain customer satisfaction and increase profit.