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Sustainable Inventory Managements for Non-Instantaneous Deteriorating Items: Preservation Technology and Green Technology Approaches with Advanced Purchase Discounts and Joint Emission Regulations

Author

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  • Shun-Po Chiu

    (Department of Information Management and Graduate School of Information Management, Vanung University, Chung Li 320313, Taiwan)

  • Jui-Jung Liao

    (Department of Business Administration, Chihlee University of Technology, Banqiao District, New Taipei City 22050, Taiwan)

  • Sung-Lien Kang

    (Department of Information Management, Chihlee University of Technology, Banqiao District, New Taipei City 22050, Taiwan)

  • Hari Mohan Srivastava

    (Department of Mathematics and Statistics, University of Victoria, Victoria, BC V8W 3R4, Canada
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 40402, Taiwan
    Department of Mathematics and Informatics, Azerbaijan University, 71 Jeyhun Hajibeyli Street, Baku AZ1007, Azerbaijan
    Section of Mathematics, International Telematic University Uninettuno, I-00186 Rome, Italy)

  • Shy-Der Lin

    (Department of Applied Mathematics and Business Administration, Chung Yuan Christian University, Chung Li 320314, Taiwan)

Abstract

The present article aims to determine the green economic policies of an inventory model for non-instantaneous deteriorating items under practical scenarios. These scenarios involve specific maximum lifetimes for items with deteriorations controllable through investments in preservation technologies, which can affect the period without deterioration. Additionally, carbon is emitted due to energy-related costs, prompting retailers to invest in green technology investments to reduce carbon emissions concurrently under the carbon tax policy and the carbon cap-and-trade policy simultaneously. Meanwhile, when a retailer is required to make a prepayment, the purchase discount policy is contingent on the number of installments offered. This means that the retailer prepays off the entire purchasing cost with a single installment, thereby receiving a maximum percentage of price discount. Otherwise, the retailer prepays a certain fraction of the purchasing cost with multiple installments, and the percentage of the price discount will be contingent on the number of n identical installments. In this context, we present theoretical results for optimal solutions, and a salient algorithm is presented, which is derived from these theoretical findings within a sustainable inventory system. To better illustrate the proposed mathematical problems, several numerical examples are presented, followed by sensitivity analysis for different scenarios.

Suggested Citation

  • Shun-Po Chiu & Jui-Jung Liao & Sung-Lien Kang & Hari Mohan Srivastava & Shy-Der Lin, 2024. "Sustainable Inventory Managements for Non-Instantaneous Deteriorating Items: Preservation Technology and Green Technology Approaches with Advanced Purchase Discounts and Joint Emission Regulations," Sustainability, MDPI, vol. 16(16), pages 1-41, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:16:p:6805-:d:1452580
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    References listed on IDEAS

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