Spektrum Industri
Vol. 23 No. 1 (2025): Spektrum Industri - April 2025

Economic Production Quantity Model under Back Order, Rework, Imperfect Quality, Electricity Tariff, and Emission Tax

Marsetiya Utama, Dana (Unknown)
Dwi Asmara Putri, Yolanda (Unknown)
Kusuma Dewi, Shanty (Unknown)



Article Info

Publish Date
30 Apr 2025

Abstract

This study aims to develop a novel Economic Production Quantity (EPQ) model that integrates important sustainability and operational factors reorders, rework, imperfect quality, emission taxes, and variable electricity tariffs- by minimizing the total inventory cost while considering environmental and energy-related constraints. The model is formulated as an Integer Non-Linear Programming (INLP) problem, with two main decision variables: the total number of products produced in a cycle (y) and the maximum allowable reorder level (w). To solve this complex optimization problem, the Genetic Algorithm (GA) is used for its efficiency in handling non-linear and combinatorial problems. In addition, a sensitivity analysis is performed to assess the impact of various parameters on the total cost. Numerical experiments show that increasing emission taxes, electricity tariffs, and installation costs significantly increase the total inventory and production costs. In particular, higher emission taxes and electricity tariffs amplify the financial burden on manufacturers, underscoring the economic implications of environmental regulations and energy use. These findings emphasize integrating operational and ecological considerations into production planning. This study contributes to the field by offering a comprehensive framework that supports sustainable manufacturing practices through cost-effective inventory management. The proposed EPQ model enables manufacturers to balance economic performance and ecological responsibility, aligning operational strategies with sustainability goals and regulatory compliance.

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Journal Info

Abbrev

spektrum

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Materials Science & Nanotechnology

Description

Spektrum Industri ISSN 1693-6590(print); ISSN 2442-2630(online) is a Journal that publish scientific articles in the science scope related to engineering and/or industrial management both research and theoretical. Literature review will be considered if it is written by an ...