An application of a smart production system to control deteriorated inventory

Abstract

Deteriorating products require different handling procedures. Handling procedure includes prevention of the natural deterioration rate of the product. The production of deteriorating products requires prevention technology for those products to use for a long time. Overproduction of deteriorating types of products causes more trouble in preventing deterioration. This study uses a smart production system to control the production of deteriorating products. A controllable production rate controls the production of deteriorating products, and preservation technology reduces the deterioration rate of products. Preservation technology helps extend the life of products, but it requires a specific temperature-controlled environment to work at maximum efficiency. Transportation of these products uses refrigerated transportation to maintain the quality during the transportation time. The purpose of using all these features for deteriorating products is to reduce the deterioration rate, which helps to reduce waste generation from production. Besides, imperfect products from the production system pass through a remanufacturing process to support the waste reduction process. A sustainable supply chain management model under the above-stated strategies is described here. A classical optimization is used to find global optimum solution of the objective function. Then, the total cost of the supply chain is optimized using unique solutions of production rate, number of deliveries, delivery lot size, system reliability, and preservation investment. Global optimum solutions are established theoretically, and few propositions are developed. Some special cases, case studies, and a comparison graph are provided to validate the results. The beta distribution provides the minimum total cost of the system than uniform, gamma, triangular, and double triangular distribution. Smart production allows 72% system reliability with a negligible amount of imperfect products. Besides, the proposed policy gain 22.72% more profit than exiting literature. The model is more realistic through convex 3D graphs, sensitivity analyses, and managerial insights.