Safeguarding of Inventories with Green and Preservation Investment and Key Approach to Two-Level Trade Credit Policy
摘要
At present, people all over the world are very concerned about the environment, are trying to protect it from pollution, and are also continuously using green technologies in the field of business to produce eco-friendly products. As a result, it has been seen that by determining the price of the item capturing the market within a particular economy is very challenging for managing a business. Every item has a specific shelf life, but to keep the inventory safe for a longer period, it is necessary to use some special techniques, i.e. preservation technology. Therefore, in this research study, an inventory model has been prepared in which trade-credit policy and price dependent demand have been taken for the convenience of customers along with the use of preservation technology for the safety of inventory. Maximum profit is obtained when the producer’s credit period is greater than the cycle time. This model shows that, a more sensible approach is to invest in preservation to regulate the deterioration and invest in green technology to mitigate the emission. Further a comparative analysis validates the effectiveness of preservation and green investment with obtaining a maximum profit and less emission. Seven numerical illustration is shown to validate the proposed model and concavity is shown with help of the hessian matrix. Finally, a sensitivity table is performed to find the effect different parameters.