A multi-objective economic production quantity model for deteriorating items with impact of the pandemic, social and environmental concerns

Abstract

ABSTRACT The COVID-19 outbreak has posed significant challenges to the worldwide supply chain. As result, there is an urgent need to develop a model for the manufacturer that includes multi-phase manufacturing with fluctuating demand during various levels of pandemic and a supply system that takes into account the environmental benefits of the product and production. This study recommends inventory model to the company for estimating optimal production amount and replenishment cycle in order to reduce overall cost and maximize profit along with green product pricing and carbon tax. The current study considers models with and without shortages for instantaneously deteriorating commodities. Because of the social awareness concern, firms can avoid the suffering from labor shortage during the pandemic crisis. Numerical examples are given to demonstrate the model’s use. A sensitivity analysis of crucial factors was performed in order to uncover more sensitive parameters that offer a clear portrayal of current concerns.