Title: A sustainable lot-sizing model with partial backordering

Authors: Vahid Reza Soleymanfar; Ata Allah Taleizadeh; Nadia Pourmohammad Zia

Addresses: School of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract: Due to the competitive nature of business, accompanied by social and environmental awareness, a great necessity to incorporate additional non-classical criteria into traditional inventory models is comprehended. Sustainable lot-sizing model is considered to be a powerful response to this necessity. In this paper a novel sustainable lot-sizing model is developed which converts all emission types of inventory management life-cycle into tangible economic metrics. In order to develop the model in a more practical manner, partial backordering consideration is embedded into the model. A pretty simple procedure is developed to determine the optimal solutions of the proposed model. Finally the formulated model is illustrated with a numerical example. A comprehensive sensitivity analysis has been accomplished on model parameters as well. According to the sensitivity analysis the results show that the decision variables are highly sensitive respect to the selling price and purchasing cost and are moderately sensitive to the demand rate, fixed ordering cost, annual average inventory obsolescence rate, weight of an obsolete unit stored and also partial backordering rate. In the other hand the changes of other parameters have slight effects on the decision variables.

Keywords: sustainable lot sizing; partial backordering; inventory management; sustainability; inventory modelling.

DOI: 10.1504/IJAOM.2015.071479

International Journal of Advanced Operations Management, 2015 Vol.7 No.2, pp.157 - 172

Available online: 29 Aug 2015 *

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