Practicing environmentally sound supply chain management in emerging economies has become popular globally in recent days. Maintaining the inventory with proper care of the environment and optimizing profit is a challenge for any business scale (retailing or wholesaling). In this paper, products' deteriorating nature is revealed with a proper handling technology, mostly known as preservation technology for a retailing business, which needs capital investment to work smoothly and control the product degradation. Besides, managing carbons is another crucial attribute that needs equal attention as preservation technology. Carbon can emit through the holding of products in retailing houses. Transportation is a prominent process in supply chain management, and carbon emission is a common problem in this process. Thus, the holding of products and transportation of products is considered a source of carbon emission in the anticipated model. In an efficient way to restrict the emissions, a cap-and-trade policy is plugged in this proposed study, showing some significant outcomes. Based on the cap, two distinct cases have been studied in this proposed model where case I (when the cap is less than the allocated emissions) and Case II (when the cap is greater than the allocated emissions). Separate numerical examples for two different cases have been discussed. Moreover, some interesting theoretical developments and sensitivity analysis are presented to validate the robustness of the proposed model.
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