Optimal Pricing and Green Production for Deteriorating Items with Price, Green Sensitive, Renewable Energy, Warranty Period Dependent Demand
摘要
In a competitive market, every producer uses a variety of policies to try to increase market demand. In order to meet the market need for goods, green products, renewable energy, and product warranties are more effective. Product warranties are crucial for both manufacturers and consumers, and they play a big part in the market’s protection and promotion of goods. Sellers provide the product with a warranty of either six months or one year, or even more. According to the seller’s perspective, this model views the product’s warranty period as deterministic. This study presents the manufacturing inventory model for degrading items based on demand using a third-order equation that includes pricing, warranty time, green sensitivity, renewable energy, and advertising. Decision factors include the ideal production batch size and cost. The price break-even point is determined, the law of demand is validated, and the greatest profit is considered. Advertisement costs, transportation costs, carbon emission costs, green technology investment costs, and replacement expenses are implemented in an effort to lower carbon emissions. The purpose of this essay is to determine the optimal production lot size and pricing to maximize total profit. The use of this concept is illustrated using numerical examples. A sensitivity analysis of the best possibilities is given in order to assess the stability of this proposed model.