Supply Chain Optimization Decisions for Environmentally Conscious Products with Preservation Investment and Carbon Tax Policy

The traditional rules of profit maximization and cost-cutting constrain the industries. Their failure to stop environmental degradation has recently forced them to work on sustainable supply chain management. The government has developed many carbon emission regulations to decrease the potential risk of industry greenhouse gas emissions. So, the present analysis acknowledges the influence of carbon tax and partially backlogged shortages for products with demand driven by market potential, consumer desire for green products, and product pricing. Additionally, the deterioration of products over time, which is affected by investments in preservation technologies, is considered. The research formulates the unit green degree and preservation technology investment as decision variables to identify the inventory model’s optimal total cost. The traditional optimization approach is used to determine the value of the decision variables. The report offers insights into establishing an optimum balance between supply chain and environmental responsibility using numerical and sensitivity analysis.