Abstract

This study develops a comprehensive inventory model incorporating realistic demand patterns under the influence of carbon emissions and inflationary conditions, excluding partial backlogging. The model considers a dual carbon regulatory framework through carbon taxand cap-and-trade policies, aiming to assess their impact on sustainable inventory decisions. Realistic demand is characterized as a function of time, price, and environmental consciousness, reflecting current market trends and consumer behavior. The analysis integrates the effects of inflation on purchasing, holding, and emission-related costs, thereby enhancing the model’s real-world applicability. The study provides optimal replenishment strategies that minimize total cost, which includes ordering cost, holding cost, carbon emission cost, and penalties under the cap-and-trade scheme. Numerical examples and sensitivity analysis demonstrate how different policy parameters and inflation rates affect inventory decisions and environmental performance. The results offer valuable insights for manufacturers and policymakers in designing sustainable and cost-effective inventory systems in a carbon-constrained economy.

Author

Pradeep Kumar and SK Son  ( Pages 19-47 )
Email:svsvishnu@gmail.com
Affiliation: Dept. of Mathematics, Vardhman College Bijnor      DOI:

Keyword

Multi variate demand, inflation, deterioration, carbon tax, carbon cap and trade policy

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