This study proposes a sustainable Economic Order Quantity (EOQ) model incorporating green technology investment to reduce carbon emissions from inventory spoilage and storage. By offsetting carbon tax costs, the model becomes more environmentally friendly. Including preservation technology further enhances sustainability by decreasing inventory spoilage rates and extending product shelf life, reducing inventory inspection frequency. The demand rate is modeled as a function of the selling price, while the holding cost increases linearly over time. To enhance economic feasibility, the model is analyzed within an inflationary environment. A numerical analysis is conducted using MATHEMATICA 12.0, comparing scenarios with and without preservation technology and with and without green technology. Results demonstrate that investing in preservation technology reduces deterioration losses and increases total profits by approximately 30%, emphasizing economic and environmental advantages.

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Effect of Preservation and Green Technology Investment on a Sustainable Inventory Model with Carbon Tax Policy Under Inflation

  • Aastha Chauhan,
  • S. R. Singh

摘要

This study proposes a sustainable Economic Order Quantity (EOQ) model incorporating green technology investment to reduce carbon emissions from inventory spoilage and storage. By offsetting carbon tax costs, the model becomes more environmentally friendly. Including preservation technology further enhances sustainability by decreasing inventory spoilage rates and extending product shelf life, reducing inventory inspection frequency. The demand rate is modeled as a function of the selling price, while the holding cost increases linearly over time. To enhance economic feasibility, the model is analyzed within an inflationary environment. A numerical analysis is conducted using MATHEMATICA 12.0, comparing scenarios with and without preservation technology and with and without green technology. Results demonstrate that investing in preservation technology reduces deterioration losses and increases total profits by approximately 30%, emphasizing economic and environmental advantages.