Sustainable inventory system with controllable non-instantaneous deterioration and environmental emission rates

Abstract

Abstract In today’s environment, it is difficult to be successful without considering sustainability. The effects of global warming are becoming more observable in daily life. Supply chain activities are important sources of environmental emissions. This effect increases concerns to control emissions through the development of a supply chain inventory model. A replenishment problem based on joint pricing, dynamic investment in environmental cost, order cost, preservation technology cost, and optimal replenishment times for a non-instantaneous deteriorating item is considered as a way to maximize retailer profit. In this problem, the demand rate depends on the stock and selling price. An Algorithm is used to find the optimum solution of the supply chain inventory problem, which determines the selling price, preservation technology investment cost, environmental emission cost, order cost, and replenishment cycle time. Theoretical analysis of the optimal properties of the proposed model is provided, and then solution methods are proposed. Numerical analysis is conducted to show the application of the model. Managerial implications are given to practitioner. This study demonstrates that the proposed model could be applied under real-world situations.