A sustainable inventory model with controllable carbon emissions, deterioration and advance payments

Maintaining product quality and environmental performance are emerging concerns in modern competitive and transparent businesses. Many retailers separate perfect products from imperfect ones to ensure product quality and endeavor to achieve carbon dioxide (CO2) reduction through green technology investments and sustainable inventory planning. Product deterioration often badly hampers the retailing business; hence, suitable preservation technologies are used. In this study, we examined the optimization model of the selling price, investment, and replenishment planning to maximize the total profit. The proposed model considered the effect of a greater deterioration rate and discount price of imperfect products. Due to the high uncertainty in demand, a realistic holding cost was deliberated with a variable and constant part. Every time the retailer transports purchased items, greenhouse gases (GHGs), including CO2, are produced. Government regulations on CO2 minimization and customer awareness for greener products stimulate retailers to invest in energy-efficient green technology. This study simultaneously showed a harmonious relationship among the attributes of preservation technology, green technology investment, and discounts on defective items. Theoretical derivations were performed with numerical analysis.

Optimum sustainable inventory management with backorder and deterioration under controllable carbon emissions

Sustainable fuzzy inventory model for deteriorating item with partial backordering along with social and environmental responsibility under the effect of learning

Carbon and Sulfur dioxides emissions are the key issues of global warming that affects on human health. Emissions cap- and -trade policy is a key mechanism implemented in several countries to reduce the emissions. Nowadays, public gathering is restricted due to the pandemic situation caused by COVID-19. As a result, people are facing huge problems in their regular activities and lifestyle. During the lockdown periods, demands for few merchandises decrease and the deterioration rate increases. Moreover, because of the unavailability of raw materials and labours during the lockdown, shortages occur at the manufacturing company. Keeping these problems in mind, a multi-objective sustainable economic production quantity model is proposed with partially back-ordering shortages, in which the effects of sustainability are investigated. To handle the demand fluctuation throughout the current pandemic, emergency level dependent demand rate is assumed. To reduce greenhouse gases emissions and deterioration rate, investments in green technology and preservation technology efforts are used. The objectives of this study are to maximize the manufacturer’s profit and minimize the greenhouse gases emissions for producing green products. The multi-objective model is solved by utilizing the fuzzy goal programming approach. The mathematical model is illustrated by four numerical examples. The main finding of the work is that under both green and preservation technologies investments, a sustainable model with partially back-ordering shortages and lockdown level dependent demand rate decreases justifiable greenhouse gases emissions and increases the product’s greening level. The results indicate that the system profit is increased by 16.1% by investing in both preservation and green technology. Furthermore, a sensitivity analysis is performed along with some managerial insights for practitioners. Finally, the paper is ended with conclusions and future research tips.

Sustainable production lot sizing problem: A sensitivity analysis on controlling carbon emissions through green investment

Retailing strategy can be considered as the most critical factor for the success of industries. Managing deteriorating products in retail demands a strategic approach aimed at mitigating losses while maximizing profitability. This entails a proactive stance towards identifying products nearing expiration, becoming obsolete or showing signs of deterioration. Offering discounts or promotions can stimulate consumer interest and clear out inventory. The promotion of products within the context of retail management involves a multifaceted approach aimed at increasing awareness, generating interest, and ultimately driving sales. Sustainability helps retailers to develop social as well as economic consistency. Every country and their respective governments are currently working towards sustainable development. New technologies in this direction have been introduced. The present paper introduces a retailing model considering green technology as it is becoming popular to lower environmental risks. The items considered in this study are perishable in nature. As product prices and the promotion of products highly influence demand, a demand pattern dependent on price and promotion is therefore considered. This paper presents a sustainable retail-based inventory model that considers preservation technology to lower the rate of deterioration and increase product shelf life. As carbon emissions is currently the biggest threat to the environment, enforcing a penalty may lower its emissions. Carbon emissions costs due to storage, transportation, and preservation are considered herein. This model studies the effect of various cost parameters on the model. A numerical analysis is performed to validate the result. The results of this study show that the implementation of preservation technology not only increases cycle time but also significantly reduces total cost, hence increasing profit. Sensitivity analysis is performed to show the behaviors of different cost parameters on total cost and decision variables. Mathematica 11 and Maple 18 software are used for graphical representation.

In this work, EOQ model develops for decaying items with hybrid demand and green technology under the impact of inflation. Carbon reduction plays a vital role in the green inventory system and in demand which is affected by items price. Moreover, the selling price and green technology investment (GTI) dependent hybrid demand has been considered. Preservation technology (PT) used to control the deterioration of the items. The retailer is allowed distinct period to occupy cash flow by supplier. Transportation and storing inventory process both are the sources of the (CE) carbon emission, and to manage the carbon emission carbon tax regulation considered. Our major goal is to optimize retailer’s selling price, to get maximum total profit, and green technology cost for constant deteriorating items with fixed expiry date. To find the optimal values of the decision parameters, the classical optimization method has been implemented. The optimal values of the total profit function with decision variables as cycle length and selling price are calculated with the help of mathematica-7. For authentication of the results, numerical illustration is done, and concave graphs well present the optimality of the total profit function. Finally, the analysis part carried to show the variations in the parameters.

PurposeThis study aims to reduce carbon emissions and minimize waste in the event of disruptions in a short and fast-food perishable such as fruits, vegetables, packaged food items, etc. supply chain through optimal investment in green and preservation technologies.Design/methodology/approach This study utilized a Hessian matrix approach to optimize decision variables with an objective to maximize the profit function.FindingsThe study demonstrates that investing in both green and preservation technology within a short and fast-food supply chain is highly beneficial for decarbonization and waste reduction and it leads to profit maximization. It has been shown with the help of a numerical experiments with investment in both green and preservation technology that total profit is 3.09% higher than without investment made in either technology.Practical implicationsThis study aids the industry in achieving food sustainability by minimizing waste of perishables and also minimizes carbon emissions which is essential for environmental protection. It assists industries in determining the optimal investment in preservation technology to minimize waste and in green technology to reduce emissions, thereby maximizing profits.Originality/valueThe current study formulates an inventory model that helps in decarbonization and waste reduction in food supply chain with the consideration of machine learning, demand disruption, preservation technology investment, screening of purchased items, waste disposal, a double triangular distribution deterioration rate, green technology investment, carbon emissions from various supply chain activities, carbon tax policy and fuel price variation over time for perishable food products in a two-warehouse system.

In today's global economy, sustainable practices have become increasingly vital across various industries, including inventory control and management. Traditional inventory models often prioritize short-term profitability without adequately addressing long-term environmental and social impacts. However, as concerns regarding resource depletion, environmental degradation, and social equity continue to mount, there is a growing imperative for sustainable inventory control solutions. This study presents an innovative sustainable inventory model designed to address this pressing need. The proposed model integrates preservation technology, defective item reuse strategies, and carbon emission considerations within a dynamic market environment characterized by fluctuating demand and shortages. By incorporating these elements, the model aims to optimize resource allocation, minimize waste generation, and reduce environmental impact while simultaneously meeting customer demands and maintaining operational efficiency. Through real-world examples and theoretical frameworks, the study demonstrates the relevance and urgency of adopting sustainable inventory control practices. The findings provide valuable insights for businesses seeking to enhance their sustainability performance and resilience in the face of evolving market dynamics and sustainability challenges. The objective of this model is to maximize the total sales revenue when demand is depend on price, green technology investment and stock of inventory. The research introduces an efficient algorithm to obtain the optimal solution. The proposed model is validated through a numerical example. Conducting sensitivity analysis allows us to investigate the impact of different parameters on the optimal solution.

A sustainable production-inventory model with imperfect quality under preservation technology and quality improvement investment

PurposeThis paper aims to simultaneously consider an inventory model with price and advertisement dependent demand, non-instantaneous deterioration rate with preservation technology investment, partially backlogged shortages and trade credit.Design/methodology/approachThis model considered a non-instantaneous deterioration, which starts after a certain storage period with a constant rate. The proposed model focused on two things. The first one is to reduce the deterioration rate by preservation technology investment, and the second one is using an appropriate trade credit period to maximize the total profit. The classical optimization technique is used to solve the problem.FindingsThe authors found that trade credit, advertising cost, preservation technology affect the total cost and selling price is one of the most important decision variables affecting the model.Practical implicationsThis study provides a reference for a manufacturer and a retailer on making inventory decisions under different pricing, advertisement expense, preservation technology investment and credit strategies. Four cases are presented to illustrate the inventory model. Sensitivity analyses are performed to gain managerial insights for decision-making.Originality/valueThe study simultaneously considers a non-instantaneous deterioration inventory model, trade-credit, and preservation technology and advertisement policy. From our literature search, no researcher has undergone this type of study.

This study investigated how greenhouse managers should invest in preservation and green technologies and introduce trade credit to increase their profits. We propose a supply chain inventory model with controllable deterioration and emission rates under payment schemes for shortage and surplus, where demand depends on price and trade credit. Carbon emissions and deterioration are factors affecting global warming, and many greenhouse managers have focused on reducing carbon emissions. Carbon caps and tax-based incentives have been used in many greenhouses to achieve such reduction. Because of the importance of reducing carbon emissions for developing a green supply chain, various studies have investigated how firms deal with carbon emission constraints. In this continuation, we have used green technology to curb the excessive emissions from the environment or make it clean from CO2. In a seller–buyer relationship, the seller can offer a trade credit period to the buyer to manage stock and stimulate demand. Deterioration may become a challenge for most firms as they are under time constraints control, and preservation technology could help. This study proposes three novel inventory strategies for a sustainable supply chain (full backorder, partial backorder, and no backorder), linking all these important issues. The solution optimizes total annual profit for inventory shortage or surplus. We conducted a numerical study with three examples to evaluate the model’s authenticity and effectiveness and demonstrate the solution technique. The deterioration and emission rates can be included in a trade credit policy to increase greenhouse profits. The results suggest that greenhouse managers could apply the proposed model to manage real-world situations.

Carbon emission regulations help firms to develop green inventory systems. Besides, lots of items perish because of deterioration. Therefore, controlling both carbon emissions and the deterioration of items becomes essential. Despite the importance of the contribution of these issues, a few works have attended the concepts simultaneously. To fill this gap, this paper proposes a production system considering carbon emissions and deterioration of items and utilises green and preservation technologies to control them, respectively. Moreover, as determining the selling price of items plays a crucial role in a production system, pricing is another issue that this paper concentrates on it. This paper determines the preservation technology investment and green technology investment with discrete values of the cycle length and selling price for an item which: (a) items deteriorate at a constant rate, and the investment in preservation technology is allowable to mitigate the number of deteriorated items, (b) carbon is emitted due to setup and holding the items and the manufacturer follows carbon cap-and-trade regulation and invests on emission reduction, (c) a price-dependent demand is utilised to evaluate the selling price in optimal value. To validate the mathematical model, numerical examples for all cases are exposed.

With passing time, carbon emission reduction has been a paramount job for human kind. Achieving a delicate balance between carbon emission reduction and the combustion of fossil fuels is essential. This balance is vital as carbon emissions are inevitable during the burning of fossil fuels, which is necessary for industrialization. This study presents an inventory model with green technology where production of new items and remanufacturing of returned items are allowed. Remembering the present global situation, the ordering cost is assumed as variable cost which contains order cancellation and reorder cost. Online order policy is considered with quality of product and a return rate. Keeping in mind the social, economic and environmental aspects, the demand function is considered as sustainability sensitive demand. Remanufacturing is performed for non-serviceable itemsi.e., defective items which are produced from imperfect production and used items that are purchased from the market. But the products for which remanufacturing cost is more than manufacturing cost are scraped off. In the production process carbon releases from setting up, manufacturing and holding of the perfect items. A nonlinear model is designed based on the above concepts. The model is solved both theoretically and analytically. The main motives of the work are to find the effects of ordering cost, carbon emission cost and green technology investment on the inventory model for suggesting the best policy to the inventory manager. Sensitivity analysis is performed to validate the model. The numerical results prove that ignoring ordering cost, carbon emission cost and green technology investment can lead to a false optimal solution, and this can be a huge economical loss for the inventory manager. The results also prove that a sustainable model with carbon emission and green technology investment is more realistic and profitable in compare with the other existing models. The results show that manufacturer wishes to engage in remanufacturing as remanufacturing cost continuously increases with respect time. Another important finding is that the manufacturer can choose remanufacturing as the cost is lower than manufacturing for saving environment.

This paper presents sustainable inventory model with constant deterioration rate when holding cost is time dependent. Demand rate is price and stock dependent. Preservation technology and carbon emission are considered for more sustainable approach. Shortages are allowed and are fully backlogged. In addition, a mathematical model is constructed to maximize the total profit function and the concavity is shown using three-dimensional graph. A numerical experimentation is carried to compute the total profit and the order quantity. To validate the proposed model, the sensitivity analysis is conducted for the total profit function as well as the order quantity. Results and observations are also discussed along with managerial insights.