Carbon-Constrained Perishable Inventory Management with Freshness-Dependent Demand

Abstract

We consider perishable inventory control with freshness-dependent demand under carbon emissions constraints. We propose two deteriorating inventory models with carbon emissions tax and the capand-trade mechanism, in which the demand is freshness dependent, carbon emissions come from inventory holding, shipping, and item deteriorating, and the objective is to maximize the profit per unit time. We characterize the existence and uniqueness of the solutions for the models. We analyse the impacts of carbon emissions tax, carbon emissions quota, and carbon price on inventory decisions, carbon emissions, and profit. We conduct simulation to generate managerial insights from our analytical results. (Received, processed, and accepted by the Chinese Representative Office.)