Title: Green supply chain inventory model for deteriorating items with variable demand under inflation

Authors: Smita Rani; Rashid Ali; Anchal Agarwal

Addresses: Department of Applied Sciences, Dr. A.P.J. Abdul Kalam Technical University, IET Campus, Sitapur Road, Lucknow, Uttar Pradesh, 226021, India ' Department of Applied Sciences, Krishna Engineering College, Ghaziabad, 201007, India ' Banasthali University, Niwai, Jodhpuriya Road, Banasthali, Rajasthan 304022, India

Abstract: Green supply chain increasingly gained interest in the last decade. What initially started as an effort to save environment has developed into a great business concept with increased profitability. Though various studies have been conducted in green supply chain, most of them have neglected the impact of deterioration and inflation. In this study, we develop an inventory model in green supply chain for deteriorating items considering recycling and reverse logistics taking inflation into account. It is assumed that remanufactured products will go to secondary market and have higher demand. Demand is assumed to be quadratic for remanufactured products while linear demand is followed for new products. Holding cost is assumed to be time dependent and deterioration is assumed to follow two-parameter Weibull distribution. The objective is to minimise total cost. Numerical and sensitivity analysis are carried out at the end of this paper.

Keywords: green supply chains; GSC; deterioration; inflation; variable demand; reverse logistics; recycling; remanufacturing; Weibull distribution; inventory modelling; inventory management; deteriorating; green SCM; supply chain management; GSCM.

DOI: 10.1504/IJBFMI.2017.082548

International Journal of Business Forecasting and Marketing Intelligence, 2017 Vol.3 No.1, pp.50 - 77

Received: 12 Sep 2016
Accepted: 25 Nov 2016
Published online: 28 Feb 2017 *

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