Optimizing production and storage decisions for deteriorating items in energy-constrained systems

This study presents an enhanced Economic Production Quantity (EPQ) model that incorporates energy consumption and product deterioration to promote sustainable operations. The model simultaneously considers energy use during production and storage phases, deterioration behavior modeled by exponential decay, and a full backordering policy. It captures the interactions between inventory levels, energy efficiency, and product quality loss to better reflect real industrial conditions. Numerical analysis shows that integrating energy-related costs significantly reduces total expenses and minimizes deterioration losses. The findings underscore the importance of setup and energy costs in production planning and highlight energy efficiency as a key technological innovation for sustainable manufacturing. The proposed model offers practical guidance for industries striving to align economic objectives with environmental goals.