Stochastic Deterioration Inventory Model Having Two-Level of Credit Financing for Stochastic Demand with Finite Production Rate Under Carbon Emission

In this paper, a stochastic deteriorating inventory model with a finite production rate is developed when the demand rate is stochastic. The deterioration rate follows beta distribution such that the products follow stochastic demand behavior in this system. An economic production model with carbon emission and two-level credit financing is constructed to analyze the retailer's expected cost. Consequently, a two-level credit financing policy is adopted to maximize the profit of the retailer and minimize the cost of the retailer. This model presents all the possible causes that may appear in green inventory models with carbon emission costs under various delay-in-payments. The aim of this paper is to examine the retailer's replenishment decisions for deteriorating products including stochastic demand. Also, it minimizes the carbon emission cost and total expected cost of the retailer. Further, a numerical example is presented to demonstrate the proposed model. Moreover, the sensitivity analysis of the optimal solution is also discussed with graphical representations to verify the genuine approach of the model.