Integrated inventory model and energy optimization in imperfect production systems with stochastic demand

This study introduces an integrated energy-aware Economic Production Quantity model with stochastic demand (EEPQ S), incorporating four key factors: Poisson-distributed demand, imperfect production systems with defects, shortage handling, and energy consumption in both production and storage. The model jointly optimizes production rate and production time to maximize profit while reducing energy and defect-related costs. Given the complexity of the objective function, solution procedures based on Differential evolution, Genetic algorithm, and Grid search are applied. Numerical analysis confirms that EEPQ S consistently outperforms traditional models, achieving the highest profit and significantly lowering energy costs through a controlled single production run strategy. Sensitivity analysis identifies energy price, equipment capacity, and environmental conditions as the most influential parameters, emphasizing the importance of energy efficiency, right-sizing, and quality control. The findings contribute to inventory optimization theory, offering practical guidance for enterprises seeking to enhance competitiveness, reduce energy consumption, and achieve sustainable production under volatile conditions.