Abstract
Incorporation of sustainable management for the rework of defective items brings long lasting benefits. In global business, there are situations when the products are procured from a global supplier. There are chances that the received lot may contain a fraction of imperfect products. These imperfect products are still valuable and can be repairable to save the environment. It is sustainable to repair imperfect items in a local repair store as compared to sending it back to the supplier. The cost of carbon emissions is also incorporated in the function to incorporate the environmental impact on total profit. Meanwhile, the supplier also offers a multi-trade-credit-period to the buyer. The developed model is sustainable and reduces the environmental impact as well as benefits for interim financing. This paper has an objective to maximize the total profit by developing a synergic economic order quantity model by considering multi-trade-credit policy, rework, and shortages simultaneously. This model can help in making decisions to enhance the performance of sustainable inventory management by controlling the cycle time and a fraction of time for a global supply chain. A non-derivative approach is employed to develop a closed-form optimal result. The numerical illustration with sensitivity analysis is also drawn to provide managerial insights into real practices.
Highlights
In global business for a sustainable environment, production managers implement and apply efficient production planning under control systems to get 100% perfect items at an economized cost
This paper studied the sustainable inventory model with synergic effects of reworking for imperfect products for environmental impact with the integration of backordering and multi-delay-in-payment
The cost of carbon emission is incorporated in the model to elaborate on the environmental impact in the profit function
Summary
In global business for a sustainable environment, production managers implement and apply efficient production planning under control systems to get 100% perfect items at an economized cost. In order to maintain the sustainable supply of products at an economical cost and to reduce the environmental impact, reparation of these items at a local repair shop as compared to exchanging them with the supplier is a sustainable approach. Trade credit becomes a win-win strategy for buyers and suppliers It adds an extra interest or an opportunity cost for the supplier and buyer, delayed time is an important subject that researchers should consider while developing inventory models. Instead of increasing the shipment cost and to put a negative impact on the environment, these imperfect items are repaired in the local repair shop, which is more sustainable as compared to sending it back to the supplier In such circumstances, these firms are allowed to incur shortages which are backordered.
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