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Development of two-shop inventory model with multi-variate demand and screening errors under controllable carbon emission

Author

Listed:
  • Sundar Lal
  • Ashok Kumar
  • Sandeep Kumar

Abstract

This study proposes an inventory model for the retailer by considering two shops under single management. This study considers that: 1) receive lot contains defective items; 2) manual screening process is carried out which is an erroneous process; 3) demand is multi-variate; 4) carbon emissions due to operational activities linked to inventory which is regulated by cap-and-tax policy; 5) capital investment in green technology to curb carbon emission. The present study aims to determine the values of order quantity and backorder level that optimise the retailer's profit. Developed model is illustrated with the help of numerical analysis as well as sensitivity analysis. In the end, the effect of promotion activities, selling price, cap-and-tax regulation policy, and investment in green technology on the optimal decision have been analysed. Based on the analysis, managerial implications are also presented.

Suggested Citation

  • Sundar Lal & Ashok Kumar & Sandeep Kumar, 2025. "Development of two-shop inventory model with multi-variate demand and screening errors under controllable carbon emission," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 52(1), pages 51-78.
    • Handle: RePEc:ids:ijores:v:52:y:2025:i:1:p:51-78
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