Sustainable Economic Production Quantity model for Product Return policy with Shortage

Abstract

          In this research, a new inventory model is developed to show the best Sustainable Economic Production Quantity value by considering product return policy with shortage. Sustainability is a multi-dimensional policy focusing on the environment, economic, and social impact. We propose four different sustainable economic production quantity models in this work, each of which takes into account distinct shortage scenarios. The product return are studied by considering the amount of the return as a variable. We estimated each member's profit function using an extensive method of direct accounting, determining the product's sustainability costs and return policy. Finally, the proposed models are described through a number of examples, and the acquired findings are analyzed and discussed. These findings suggest that, when compared to the three previous proposed models, the sustainable economic production quantity with partial backordering model is a more generic and realistic model that can be applied in many real-world scenarios while yielding a respectable profit.