A sustainable smart production model for partial outsourcing and reworking.

Smart production plays a significant role to maintain good business terms among supply chain players in different situations. Adjustment in production uptime is possible because of the smart production system. The management may need to reduce production uptime to deliver products ontime. But, a decrement in production uptime reduces the projected production quantity. Then, the management uses a limited investment for pursuing possible alternatives to maintain production schedules and the quality of products. This present study develops a mathematical model for a smart production system with partial outsourcing and reworking. The market demand for the product is price dependent. The study aims to maximize the total profit of the production system. Even in a smart production system, defective production rate may be less but unavoidable. Those defective products are repairable. The model is solved by classical optimization. Results show that the application of a variable production rate of the smart production for variable market demand has a higher profit than a traditional production (52.65%) and constant demand (12.45%).

Product outsourcing policy for a sustainable flexible manufacturing system with reworking and green investment.

Production of defective products is a very general phenomenon. But backorder and shortages occur due to this defective product, and it hampers the manufacturer's reputation along with customer satisfaction. That is why, these outsourced products supply, a portion of required products for in-line production. This study develops a flexible production model that reworks repairable defective products and outsources products to prevent backlogging. A percentage of total in-line production is defective products, which is random, and those defective products are repairable. A green investment helps the reworking process, which has a direct impact on the market demand for products. A classical optimization solves the profit maximization model, and a numerical method proves the global optimal solutions. Sensitivity analysis, managerial insights, and discussions provide the highlights and decision-making strategies for the applicability of this model.