A Sustainable Circular Economy Inventory Model of Deteriorating Items with Logistic Demand Using Preservation Technology
摘要
The circular economy has gained prominence as an effective strategy for advancing environmental sustainability across multiple industries.This study develops an inventory model for a non-instantaneous deteriorating item by incorporating preservation technology to reduce product spoilage. The model is motivated by environmental concerns, particularly the adverse impacts of plastic pollution from packaging materials such as bottles and jars. To address these challenges, circular economy principles are embedded into the model, emphasizing reuse and waste reduction. The methodology involves formulating the mathematical model under these assumptions and deriving optimal policies for decision-making. The scope of the study is confined to single-item inventory systems, highlighting sustainability and economic efficiency. Demand is modeled using a logistic function relative to linear unit profit. An optimization algorithm is employed to maximize the total average profit while identifying the optimal circularity index. A numerical example is provided to demonstrate the practical applicability of the proposed model. This example serves as a validation tool, confirming the model’s effectiveness and accuracy. The results demonstrate that implementing circular economy practices can lead to increased profitability in the packaging industry. The primary objective of this study is to develop an inventory model that maximizes total profit while integrating circular economy strategies. The study aims to align economic efficiency with sustainability through effective resource utilization. Sensitivity analysis and managerial insights are also provided, along with a discussion on potential future research directions in the conclusion. The the Mathematica 11.1 software was employed to solve the complex algebraic equations.