A sustainable inventory model for growing items considering carbon emissions, product expiry, and profit-sharing policy

Abstract

In this article, a multi-echelon supply chain for growing and deteriorating items, where the grower has a lot of live newborn items (growing) is discussed. The grower transfers the matured inventory to the processor in each shipment. The processor begins to process the stock as a ready-sale product in the market. The processor also delivers the processed inventory to the retailer in each shipment in the non-processing period of his cycle length. Then the processor offers trade credit to the retailer and makes the retailer agree to share a portion of his profit with him. The product’s life cycle when in the hand of the retailer is certain and it expires after some time t. Carbon emission during processing is considered while packing and preserving the livestock for sale. Depending on these assumptions, there are six possibilities to discuss profit values. Sensitivity analysis was also brought to verify the optimal determined values. The profit-sharing sharing method’s outcome benefits the processor and the retailer more.