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<p>This study explores a sustainable inventory model where the retailer's selling price affects product demand while incorporating carbon emissions during inventory holding, ordering, and production. Various carbon policies are analyzed to mitigate emissions, including (1) A carbon tax policy without green technology investment, (2) A carbon tax policy with green technology investment, and (3) A carbon cap-and-trade policy with green technology investment. The primary goal is to determine the most effective policy for optimizing the retailer's overall profit. A classical optimization method is employed, with results validated using the Hessian matrix’s principal minors. Sensitivity analysis is performed to gain managerial insights, and graphical representations illustrate the inventory parameters’ impact on decision variables. Findings show that the carbon cap-and-trade policy with green investment is the most suitable approach for the retailer. This proposed model aids the decision-makers in enhancing business performance and making informed decisions regarding non-immediately degraded goods and carbon emissions regulations.</p>

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Controllable carbon emission policies for a sustainable non-instantaneous deteriorating inventory model with partial backlogging and price-sensitive demand

  • 期刊论文

  • 发表日期：

    2025年12月29日

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  • Nita H. Shah,
  • Naisargi M. Prajapati,
  • Pratik H. Shah

摘要

This study explores a sustainable inventory model where the retailer's selling price affects product demand while incorporating carbon emissions during inventory holding, ordering, and production. Various carbon policies are analyzed to mitigate emissions, including (1) A carbon tax policy without green technology investment, (2) A carbon tax policy with green technology investment, and (3) A carbon cap-and-trade policy with green technology investment. The primary goal is to determine the most effective policy for optimizing the retailer's overall profit. A classical optimization method is employed, with results validated using the Hessian matrix’s principal minors. Sensitivity analysis is performed to gain managerial insights, and graphical representations illustrate the inventory parameters’ impact on decision variables. Findings show that the carbon cap-and-trade policy with green investment is the most suitable approach for the retailer. This proposed model aids the decision-makers in enhancing business performance and making informed decisions regarding non-immediately degraded goods and carbon emissions regulations.