Impacts of green and preservation technology investments on a sustainable EPQ model during COVID-19 pandemic

Abstract

Carbon and Sulfur dioxides emissions are the key issues of global warming that affects on human health. Emissions cap- and -trade policy is a key mechanism implemented in several countries to reduce the emissions. Nowadays, public gathering is restricted due to the pandemic situation caused by COVID-19. As a result, people are facing huge problems in their regular activities and lifestyle. During the lockdown periods, demands for few merchandises decrease and the deterioration rate increases. Moreover, because of the unavailability of raw materials and labours during the lockdown, shortages occur at the manufacturing company. Keeping these problems in mind, a multi-objective sustainable economic production quantity model is proposed with partially back-ordering shortages, in which the effects of sustainability are investigated. To handle the demand fluctuation throughout the current pandemic, emergency level dependent demand rate is assumed. To reduce greenhouse gases emissions and deterioration rate, investments in green technology and preservation technology efforts are used. The objectives of this study are to maximize the manufacturer’s profit and minimize the greenhouse gases emissions for producing green products. The multi-objective model is solved by utilizing the fuzzy goal programming approach. The mathematical model is illustrated by four numerical examples. The main finding of the work is that under both green and preservation technologies investments, a sustainable model with partially back-ordering shortages and lockdown level dependent demand rate decreases justifiable greenhouse gases emissions and increases the product’s greening level. The results indicate that the system profit is increased by 16.1% by investing in both preservation and green technology. Furthermore, a sensitivity analysis is performed along with some managerial insights for practitioners. Finally, the paper is ended with conclusions and future research tips.