Scholarlink

<p>Inventory optimization is essential to minimize the overall cost of inventory management while balancing supply and demand. Being an integral part of inventory<!--Query ID="Q1" Text="Please check if the title is captured and presented correctly." Resolved="yes"--> optimization, the inventory control model enables firms to monitor and optimize their inventory levels effectively. This study presents a sustainable inventory control model for deteriorating products that considers the use of preservation technologies to slow down the rate of deterioration. Here, the demand function depends on both time and inventory level. The shortage of inventory and complete<!--Query ID="Q2" Text="Please check if the affiliations isare presented correctly." Resolved="yes"--> backlogging of orders are acceptable. As we know, carbon emissions are a serious concern for the environment. Three different types of scenarios (i.e. without carbon emission policy, with carbon tax policy and with carbon cap and trade policy) have been presented so that the best case can be considered, which is most profitable for the retailer as well as environment friendly. The conditions for the existence and uniqueness of the solution of the inventory optimization problem have been investigated. In numerical analysis, the profit function of all the cases is maximized by striking a balance between the ordering quantities and the cost of the preservation technology. A sensitivity analysis has been done to analyse the effect of changes in various parameters on the optimal values of total profit, preservation technology cost, and ordering quantities for each model. The sensitivity analysis shows that the demand scale parameter, purchase cost, and holding cost have a significant impact on the total profit and the optimal policy in the first case, whereas in the second case, the total profit is sensitive only to the demand scale parameter. Moreover, the findings enable retailers to adopt more efficient and environmentally compliant inventory policies, highlighting cap-and-trade as a more effective and sustainable regulatory framework.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Impacts of Environment Friendly Carbon Emission Control Policies in Inventory Optimization for Deteriorating Products

  • 期刊论文

  • 发表日期：

    2026年2月6日

查看全文
  • Arushi Garg,
  • Suvankar Biswas,
  • Deepika Garg

摘要

Inventory optimization is essential to minimize the overall cost of inventory management while balancing supply and demand. Being an integral part of inventory optimization, the inventory control model enables firms to monitor and optimize their inventory levels effectively. This study presents a sustainable inventory control model for deteriorating products that considers the use of preservation technologies to slow down the rate of deterioration. Here, the demand function depends on both time and inventory level. The shortage of inventory and complete backlogging of orders are acceptable. As we know, carbon emissions are a serious concern for the environment. Three different types of scenarios (i.e. without carbon emission policy, with carbon tax policy and with carbon cap and trade policy) have been presented so that the best case can be considered, which is most profitable for the retailer as well as environment friendly. The conditions for the existence and uniqueness of the solution of the inventory optimization problem have been investigated. In numerical analysis, the profit function of all the cases is maximized by striking a balance between the ordering quantities and the cost of the preservation technology. A sensitivity analysis has been done to analyse the effect of changes in various parameters on the optimal values of total profit, preservation technology cost, and ordering quantities for each model. The sensitivity analysis shows that the demand scale parameter, purchase cost, and holding cost have a significant impact on the total profit and the optimal policy in the first case, whereas in the second case, the total profit is sensitive only to the demand scale parameter. Moreover, the findings enable retailers to adopt more efficient and environmentally compliant inventory policies, highlighting cap-and-trade as a more effective and sustainable regulatory framework.