COVID-19 SOCIAL DISTANCING AND PROFIT MAXIMIZATION INVENTORY MODEL WITH OVERAGE

Abstract

Goal: This research work aims in presenting the impacts of social distancing on the societal domain in particularly with the special focus on inventory management, the accelerating fuel of the production sectors. A profit maximization inventory model comprises of overage management, waste disposal and product propagation is proposed.

Design / Methodology / Approach: A mathematical model with the objective of profit maximization and overage management is developed to cater the needs of the production sectors at times of pandemic situation.

Results: This model yields the optimal quantity (Qα) that maximizes the expected aggregate profit per unit of time.

Limitations of the investigation: This research is of exploratory kind and the lack of similar research in the literature locks the opportunity of comparison, also the proposed model is a more generalized in nature.

Practical implications: The proposed maximization model will certainly assist the decision makers to handle the situations of overage caused by pandemic social distancing.

Originality/Value: The combination of profit maximization, overage management in the context of COVID 19 social distancing is modelled to benefit the production sectors and this is the novel approach of this article.