Title: A two-warehouse inventory model of deteriorating products with preservation technology investment and carbon emission

Authors: Nipa Biswas; Shubham Priyadarshi; Om Prakash

Addresses: Department of Mathematics, National Institute of Technology, Sikkim, Barfung Block, Ravangla Sub-Division, South Sikkim 737139, India ' Department of Mathematics, National Institute of Technology, Sikkim, Barfung Block, Ravangla Sub-Division, South Sikkim 737139, India ' Department of Mathematics, National Institute of Technology, Sikkim, Barfung Block, Ravangla Sub-Division, South Sikkim 737139, India

Abstract: This paper presents a two-warehouse inventory model for deteriorating items with time-dependent nonlinear demand and preservation technology. Investing in preservation technology helps reduce the deterioration effects. This model considers that inventory holding, ordering, and deterioration activities contribute to carbon emissions, which are regulated through the implementation of a carbon tax policy. Shortages are assumed to be fully backlogged. The objective of this model is to maximise overall profit by determining the best ordering strategy and replenishment time. An algorithm is presented to find the optimal solutions. Some numerical examples are provided to support the established model, and a sensitivity analysis is conducted on the key parameters to examine the impact on the decision variables. The proposed approach is further illustrated through a graphical depiction of the optimal solution. The findings show that reducing carbon emissions from holding, transporting, and deteriorating items boosts the retailer's order quantity and total profit.

Keywords: inventory; time-dependent demand; preservation technology; carbon emission.

DOI: 10.1504/IJAOM.2025.148397

International Journal of Advanced Operations Management, 2025 Vol.16 No.3, pp.309 - 335

Received: 08 Jul 2024
Accepted: 07 Jun 2025

Published online: 03 Sep 2025 *

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