Economic Manufacturing Model under Partial Backordering and Sustainability Considerations

Today, “Sustainable production” has attracted a great deal of interest by academic researchers and practitioners due to the raising environmental and social concerns. Sustainable EPQ model has been developed as a result of this interest and also necessity. This paper develops a novel sustainable EPQ (SEPQ) model under partial backordering consideration. The model converts all emission variations of inventory production lifecycle into economic tangible factors. A solution procedure to determine the optimal solution of the problem is developed for this SEPQ-PBO model. In order to demonstrate validity of the proposed model and applicability of the developed solution procedure, numerical examples accompanied by comprehensive sensitivity analysis of key parameters of the model are provided.