Sustainable Inventory System for Decaying Products with Expiration Date, Carbon Emission, and Price-Sensitive Exponentially Decreasing Demand

Abstract

In today’s era, the carbon emissions of the manufacturing industries have become a sensitive issue worldwide. Also, controlling of carbon emissions becomes a major problem for developing countries. Every country faces climate change and global warming on account of carbon emissions. In the direction of reducing carbon emissions, the present study proposes an economically, socially, and environmentally savvy sustainable inventory system.  It is generally assumed that the demand is price-sensitive exponentially decreasing and constant deterioration rate together with the expiration date, shortages, and carbon tax policy. Most of the products have a fixed life span for maintaining their quality in their original condition. Therefore, products with a maximum life span and more sustainability are preferred by the customers. The model is formulated with a sustainable goal that the incurred total cost is optimized together with the determination of optimal cycle length. The practical utility and a better understanding of this model are shown with the help of a numerical example.  A sensitivity analysis of some crucial parameters is also conducted.