Title: A sustainable inventory system under the impact of partial trade credit

Authors: Sonia Dua; Sandeep Kumar Mogha; Himani Dem

Addresses: Department of Mathematics, Chandigarh University, Mohali, Punjab – 410143, India ' Department of Mathematics, Chandigarh University, Mohali, Punjab – 410143, India ' Department of Mathematics, Ramjas College, University of Delhi, New Delhi, 110007, India

Abstract: In the present scenario, countries are required to focus more on reduction of carbon emissions, as it is one of the key factors of global warming. This article considers the approaches to decrease emissions arising from production, storage and transportation. Suppliers offer ample opportunities to overcome the burden of holding costs from retailers by adopting the permissible delay method. We have developed a mathematical model for sustainable inventory system involving deteriorating items with a partial trade credit policy. The long-term best ordering tactics are for retailers that maximise total annual profit while reducing carbon emissions is provided. An efficient algorithm is also proposed to obtain the solution with numerical example. Sensitivity analysis is also performed to study how the model behaves against the changes in some key parameters.

Keywords: inventory model; partial trade credit; carbon emission cost; volume flexibility.

DOI: 10.1504/IJMOR.2024.142450

International Journal of Mathematics in Operational Research, 2024 Vol.29 No.3, pp.354 - 376

Received: 29 Nov 2022
Accepted: 12 Mar 2023
Published online: 31 Oct 2024 *

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