<p>Renewable energy comes from natural sources, such as sunlight and wind, which are continuously replenished. Additionally, growing global concerns about environmental pollution have prompted us to switch out some conventional products with greener alternatives. In this paper, Bertrand’s price models for complementary products and deteriorating items and incorporated advertisement, renewable energy, and green sensitive dependent demand in a third-order equation with optimal price and production lot size being decision variables. To my knowledge, no authors have considered Bertrand’s price for complementary and deteriorating items with advertisement, renewable energy, and green-sensitive demand in third order equation. Price break-even point is determined, law of demand is verified, and highest possible profit is considered. Transportation costs and carbon emission costs are introduced to reduce carbon emissions. Finding optimal pricing along production lot size for maximizing overall profit is purpose of this paper. Numerical examples demonstrate this model's applicability. To evaluate stability of this suggested model, a sensitivity analysis of optimum solutions is provided. The data are generated by using Visual Basic 6.0.</p>

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Production inventory model for complementary products with Bertrand’s price-green sensitive-renewable energy-advertisement dependent demand: in third order equation

  • C. K. Sivashankari

摘要

Renewable energy comes from natural sources, such as sunlight and wind, which are continuously replenished. Additionally, growing global concerns about environmental pollution have prompted us to switch out some conventional products with greener alternatives. In this paper, Bertrand’s price models for complementary products and deteriorating items and incorporated advertisement, renewable energy, and green sensitive dependent demand in a third-order equation with optimal price and production lot size being decision variables. To my knowledge, no authors have considered Bertrand’s price for complementary and deteriorating items with advertisement, renewable energy, and green-sensitive demand in third order equation. Price break-even point is determined, law of demand is verified, and highest possible profit is considered. Transportation costs and carbon emission costs are introduced to reduce carbon emissions. Finding optimal pricing along production lot size for maximizing overall profit is purpose of this paper. Numerical examples demonstrate this model's applicability. To evaluate stability of this suggested model, a sensitivity analysis of optimum solutions is provided. The data are generated by using Visual Basic 6.0.