Sustainable Production Policies Under the Effect of Volume Agility, Preservation Technology, and Price-Reliant Demand


Prerna Gautam, KM Kamna, Chandra K. Jaggi




Any supply chain supposes production and pricing decisions. The most influential factor that affects a sales decision is the price of a product, which in turn, affects the configuration of the demand. Further, holding the produced goods means also the occurrence of deterioration as a common phenomenon, which may lead to excessive loss if left untreated. Thus, an investment in preservation process helps in controlling deterioration efficiently. Moreover, incorporation of the environmental factor presents the need of the hour in the current situation of environmental imbalance. To address the above issues, we consider volume agility to avoid any excessive storage and backlogging costs, carbon-emissions and energy-usage to address the performance of our model regarding the environment, and investment in preservation process to control the loss due to deterioration. Also, the demand of the product is taken as price-reliant. The investment in preservation, production rate, and price of the product are taken as the decision variables so as to maximize the total inventory turnover. Validity and robustness of the model is analyzed through numerical and sensitivity analysis. A wide-ranging applicability of the developed study is also provided.