SUSTAINABLE PRODUCTION POLICIES UNDER THE EFFECT OF VOLUME AGILITY, PRESERVATION TECHNOLOGY AND PRICE-RELIANT DEMAND

Abstract

The fundamental of any supply chain revolves primarily between the production and pricing decisions. The most influential factor that affects the sales decision is the price of the product which radically affects the configuration of the demand. Further, while holding the produced goods the occurrence of deterioration is a common
a phenomenon which may lead to an excessive loss if left untreated, thus, an investment in the preservation process helps in controlling deterioration efficiently. Moreover, the incorporation of the environmental factor is the need of the hour in the current situation of environmental imbalance. To address the above issues, the present paper considers volume agility so as to avoid any excessive storage and backlogging cost. Carbon-emissions and energy-usage are considered to address the environmental performance of the model. An investment in the preservation process is made so as to control the loss due to deterioration. Also, the demand for the product is taken as price-reliant. The investment in preservation, production rate and price of the product is taken as decision variable so as to maximize the
total inventory turnover. The paper is analyzed for its validity and robustness through numerical and sensitivity analysis. The wide-ranging applicability of the developed study is also provided.