Title: An EOQ model for freshness and stock dependent demand with expiration date under cap-and-trade mechanism

Authors: Aditi Khanna; Shikha Yadav

Addresses: Faculty of Mathematical Sciences, Department of Operational Research, University of Delhi, Delhi – 110007, India ' Faculty of Mathematical Sciences, Department of Operational Research, University of Delhi, Delhi – 110007, India

Abstract: The gradual contamination of the environment due to the discharge of greenhouse gases (GHGs) into the environment is a risk to all ecological systems. Increased health consciousness has consequently increased the demand for fresh produce. The present paper contributes to the existing literature on carbon control policies by developing an EOQ model with "freshness and stock dependent demand with expiration date". Also, it is observed that maintaining a high stock at the end of the cycle is more profitable. Thus, the assumption is relaxed from zero to a non-zero ending inventory. Moreover, it is realised that the main sources of carbon emissions are transhipments, inventory holding, and deterioration of perishable products. To ease the environmental change "Cap-and-trade mechanism" is implemented to increase the total profit and at the same time helps in reducing carbon emissions. Some important managerial insights are obtained from numerical and sensitivity analysis.

Keywords: cap-and-trade; carbon emission; expiration date; shelf space; freshness; stock dependent demand.

DOI: 10.1504/IJSOI.2021.117259

International Journal of Services Operations and Informatics, 2021 Vol.11 No.2/3, pp.197 - 209

Received: 17 Apr 2020
Accepted: 30 Nov 2020
Published online: 26 Aug 2021 *

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