Optimization of Smart Production Inventory Model with E-logistics and Digital advertising costs parameters together with advertising errors

Abstract

In recent years the smart manufacturing inventory models are being developed to endure the technology escalations in product production, propagation and distribution. The manufacturing firms must be competent in the optimal selection of pertinent portals of product promotion and dissemination for making the products reach the global level. This paper proposes an inventory model with smart attributes with linear demand pattern; incorporates the contemporary costs parameters of E-logistics and digital advertising; encompasses the dominant digital production and marketing channels that are inevitable for the survival of the production sectors in this digitalized cosmos. This model also discusses specifically the advertising errors and its respective costs incurred. Differential equations are used in inventory modelling and the consistency of the model is tested with a numerical example. The proposed model is highly accommodative as it encloses various sub-cost parameters and this model will certainly benefit the production sectors of various levels ranging from small to large in making realistic decisions in the context of customer acquisition and retention.