Sustainable supply chain model for deteriorating items incorporating inflation and green investment Online publication date: Thu, 03-Feb-2022
by Nidhi Handa; S.R. Singh; Neha Punetha
International Journal of Services Operations and Informatics (IJSOI), Vol. 11, No. 4, 2021
Abstract: In the globalisation era, greenhouse emission is a major atmospheric problem in entire world. It increases the level of carbon dioxide and methane. In this paper, a sustainable supply chain inventory decision making problem is derived by incorporating the effect of inflation on costs and encouraging green investment when demand is dependent on seasonality and frequency of advertisement of the products. In addition, deterioration, shortages and partial backlogging are considered to meet customer satisfaction. In stock out situation lost sales are partially backlogged where backlogging rate is constant. The aim of this study is to illustrate optimal run time at which stock reaches zero which can maximise the total profit. Solution procedure, numerical assessment and sensitivity analysis are conducted to show the application of the theoretical model in real- life scenario. The findings expressed that the proposed inventory problem is very beneficial in the retail business to maintain environmental emission.
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