A Greenness Integrated Inventory Planning for Non-instantaneous Deteriorating Items with Time and Price-sensitive Demand and Partially Backlogged Shortages
摘要
This study develops a sustainable inventory model incorporating a price and time-dependent demand function influenced by greenness level for non-instantaneous deteriorating items. The model reflects realistic market behaviour where demand decreases over time, sensitive to price changes and increases with enhanced environmental friendliness of the product. Deterioration is assumed to begin after a fixed period, representing a non-instantaneous deterioration pattern. Partially backlogged shortages are allowed. The aim is to determine the optimal selling price and replenishment cycle that maximizes the total profit. The model also discusses different greenness levels to optimize overall profit, which aligns with minimizing environmental impact. The existence and uniqueness of the optimal solution are established using mathematical theorems and an algorithm is proposed to find optimal solutions. Numerical examples are provided to demonstrate the influence of key parameters of the model. Sensitivity analysis is carried out to find model’s behaviour and managerial insights are provided for balancing economic and environmental sustainability objectives.