Impact of Green Design and inflation on a two-warehouse inventory model

Abstract

Deterioration becomes a major problem in inventory modeling which increases the carbon emission and effect the climate change. The retailer will store their excess items in a rented warehouse (RW) in order to reduce deterioration and storage space limitations in their own warehouse (OW). During this investigation, shortages are also permitted. By implementing green design and product stewardship, manufactures can reduce their recycling costs. Through green design and product stewardship, a manufacturer can maintain both profit as well as an environmental concern. In this model I determined for maximizing the average profit under the influence of inflation. Numerical example is carried out by using the software Mathematica 12.0 which used to illustrate the proposed model and a sensitivity analysis is carried out to study the effect of different parameters.