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<p>Emission reduction strategies are crucial not only for environmental sustainability but also for ensuring economic viability in today’s highly competitive business&#xa0;environment. For the first time, this study explores how government subsidies can enhance the economic viability of sustainable practices, enabling companies to pursue green technology investments while managing inventory. The proposed model incorporates perishable products, integrates both partial downstream delayed payments and partial upstream advance payments, and is developed within an economic order quantity (EOQ) framework to align business performance with broader global sustainability objectives. The analysis evaluates the retailer’s operational decisions under four scenarios: (i) no investment, (ii) investment without subsidy, (iii) investment with base subsidy support (IBS), and (iv) performance-based subsidy (PBS) schemes. Taking into account the feasibility of the investment practice, optimal decisions are achieved by investigating cost functions analytically under all scenarios. To evaluate the monetary advantage of reducing emissions, a new metric, normalized Cost Saving per Unit of Reduced Emission (CSURE), is introduced. The findings highlight a dual advantage, enhancing retailer cost efficiency while advancing environmental sustainability. Among the scenarios, based on the numerical example, the PBS scheme achieves the best outcomes, reducing emissions by 14.01% and lowering costs by 2.03% compared to the model that does not implement green technology.</p>

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Economic and Environmental Assessment of Lot Sizing and Emission Reduction Strategies With Government Incentives for Perishable Items

  • 期刊论文

  • 发表日期：

    2026年5月2日

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  • Md Rakib,
  • Farhana Rashid,
  • Md. Al-Amin Khan,
  • Ali Akbar Shaikh

摘要

Emission reduction strategies are crucial not only for environmental sustainability but also for ensuring economic viability in today’s highly competitive business environment. For the first time, this study explores how government subsidies can enhance the economic viability of sustainable practices, enabling companies to pursue green technology investments while managing inventory. The proposed model incorporates perishable products, integrates both partial downstream delayed payments and partial upstream advance payments, and is developed within an economic order quantity (EOQ) framework to align business performance with broader global sustainability objectives. The analysis evaluates the retailer’s operational decisions under four scenarios: (i) no investment, (ii) investment without subsidy, (iii) investment with base subsidy support (IBS), and (iv) performance-based subsidy (PBS) schemes. Taking into account the feasibility of the investment practice, optimal decisions are achieved by investigating cost functions analytically under all scenarios. To evaluate the monetary advantage of reducing emissions, a new metric, normalized Cost Saving per Unit of Reduced Emission (CSURE), is introduced. The findings highlight a dual advantage, enhancing retailer cost efficiency while advancing environmental sustainability. Among the scenarios, based on the numerical example, the PBS scheme achieves the best outcomes, reducing emissions by 14.01% and lowering costs by 2.03% compared to the model that does not implement green technology.