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<p>Retailing strategy plays a crucial role in managing perishable products, where deterioration significantly affects operational efficiency and profitability. This study proposes an integrated green retail inventory model incorporating preservation technology, quadratic time-price demand, and promotional efforts to optimize sustainability and profitability. The model explicitly includes carbon emission costs from storage, transportation, and preservation, with an emission penalty mechanism to control environmental impact. Numerical analysis demonstrates that preservation investment extends the replenishment cycle by 18% and reduces total inventory cost by 12%, compared to conventional retail models. Incorporating dual transportation cost components results in a 9% increase in net profit. Sensitivity analysis confirms that optimal preservation investment rises with deterioration rates and interest earnings, improving eco-efficiency. The proposed model outperforms existing approaches by integrating environmental penalties and green technology, achieving both cost savings and emission reductions. These findings offer strategic managerial insights for sustainable retail inventory decisions.</p>

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An Integrated Retail Inventory Optimization Under Time- and Price-Based Demand Considering Promotional Efforts, Preservation Technology, and Green Investment

  • 期刊论文

  • 发表日期：

    2025年11月29日

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  • Monika K. Naik,
  • Ketan B. Naik

摘要

Retailing strategy plays a crucial role in managing perishable products, where deterioration significantly affects operational efficiency and profitability. This study proposes an integrated green retail inventory model incorporating preservation technology, quadratic time-price demand, and promotional efforts to optimize sustainability and profitability. The model explicitly includes carbon emission costs from storage, transportation, and preservation, with an emission penalty mechanism to control environmental impact. Numerical analysis demonstrates that preservation investment extends the replenishment cycle by 18% and reduces total inventory cost by 12%, compared to conventional retail models. Incorporating dual transportation cost components results in a 9% increase in net profit. Sensitivity analysis confirms that optimal preservation investment rises with deterioration rates and interest earnings, improving eco-efficiency. The proposed model outperforms existing approaches by integrating environmental penalties and green technology, achieving both cost savings and emission reductions. These findings offer strategic managerial insights for sustainable retail inventory decisions.