Optimising Pricing and Green Investment Decisions in a Two-echelon Supply Chain for Non-instantaneous Deteriorating Products with Carbon Emission Consideration
摘要
The rapid growth of global trade and industrialization has intensified environmental concerns, particularly the rise in carbon emissions contributing to climate change. Achieving sustainability in supply chain operations has become a critical challenge for manufacturers and retailers. This study proposes a production framework for a manufacturer-retailer supply chain for non-instantaneous deteriorating products while incorporating green technology investment. The study develops a two-echelon supply chain model considering price-dependent customer demand and controllable carbon emissions, designed to mitigate overall emissions from warehousing and transportation. Pricing strategies along with an advance payment approach is incorporated to maximize business profitability. This primary goal is to identify the optimal green technology investment, retail price and inventory planning that maximize the total profit of the supply chain. A nonlinear mathematical model is formulated, and a corresponding solution approach is introduced. The proposed framework is validated using a numerical example, and a sensitivity analysis is carried out to assess the effects of parameter variations. The numerical results indicate that a supply chain incorporating green technology investment outperforms one without such investment. This research uniquely links deterioration, carbon reduction, and financing policies under a unified decision-making approach, offering managerial insights for designing profitable and environmentally responsible supply chains.