Abstract

In today’s market, businesses face many challenges of balancing minimal cost and maximum profitability with sustainable environment while managing decomposable products that undergo quality degradation over time. This model addresses these challenges by proposing a mathematical modelling that shows realistic scenario where items keep in a preservative period before deterioration starts. In this model retailer offered trade credit as a financial structure that effect ordering decisions and cash flow also. In this model we considered uniquely demand as dependent on advertisement factor while simultaneously consider carbon emissions which addressing the sustainable supply chain. Variable holding costs are modelled as a function of stock level and time which is more realistic than constant holding cost. Using optimisation technique obtain the optimal ordering quantity, total cycle time that minimise total cost. The model is solved analytically where possible and numerically with sensitivity analysis. Our findings reveal significant interactions between financial, environmental, and operational factors, demonstrating that optimal inventory policies must balance these competing objectives. Numerical examples and comparative analyses validate the model's effectiveness and highlight its practical applicability across various industry sectors dealing with perishable goods.

Author

Anil Kumar, Monu Kumar, SR Singh, Deepi D   ( Pages 1-24 )
Email:monukumar170190@gmail.com
Affiliation:MMH College Ghaziabad       DOI: https://doi.org/10.58517/IJICM.2025.14101

Keyword

non-instantaneous items, Variable holding cost, trade credit, carbon emissions.

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