Optimization of a Sustainable Inventory Model for Non-Instantaneous Deteriorating Items with Preservation Technology under Inflation and Renewable Energy

Abstract

Due to global warming and increasing environmental issues sustainability becoming as an essential phenomenon in the operations management therefore industrialists is enforced to take sustainable practices such as renewable energy. On the other hand, governments are imposing carbon tax to reduce the emission due to the inventory management. A sustainable inventory model has been developed here for the decaying items, and the deterioration is assumed to be non- instantaneous. Preservation technology has been considered to diminish the decaying rate.  The renewable energy and carbon emission tax has been addressed to reflect the sustainable aspects of the system, while the costing has been analysed under the inflationary environment to address the economic aspects. Demand rate has taken as price dependent. Mathematical model has been developed, and the total profit is maximized considering the price, preservation technology, renewable energy coefficient and cycle length as the decision variables.