A sustainable manufacturing-remanufacturing inventory model with price and green sensitive demand for defective and usable items

Abstract

A sustainable manufacturing-remanufacturing inventory model with two production phases is presented in this study. In this two phases model, the first phase is used for manufacturing whereas the second phase is used for both manufacturing and remanufacturing. Keeping in mind about environment and price of products, it is presumed that market demand rate is influenced by the greenness of item and unit selling price simultaneously. Remanufacturing is performed for non-serviceable items i.e., defective items which are produced from imperfect production and used items that are purchased from the market. But the products for which remanufacturing cost is more than manufacturing cost are scraped off. In the production process carbon releases from setting up, manufacture and holding of the perfect items. To mitigate the carbon emission carbon tax regulation is imposed. Next, concavity of the profit function is driven through the pseudo concavity. Profit is maximized by minimizing the economic, environmental, and social effect. The models are illustrated by a numerical example and a sensitivity analysis is also elaborated for fixed parameters. Special cases are provided to compare the result with previous literature. The results shows that manufacturer wishes to engage in remanufacturing as remanufacturing cost continuously increases with respect time. Another important finding is that the manufacturer can choose remanufacturing as the cost is lower than manufacturing for saving environment. Finally, mathematical findings are listed and managerial implications are recorded.