A Green Inventory Model for a Greenhouse Firm System with Controllable Deterioration Under Stock-Dependent Demand

The proposed greenhouse inventory model has two possible strategies for working collaboratively on a supply chain. In addition, the greenhouse retailer can invest in preservation technology to control the deterioration rate when demand is a stock-dependent power function with a nonlinear holding cost. A sustainable inventory system searches for ways to control the environmental impacts of a greenhouse farm, affecting its profitability. In a greenhouse market system, sales teams'/promotional effort initiatives increase demand for the last customer, leading to higher demand for each participant in the greenhouse supply chain while considering environmental emissions. In a cooperative system, both the greenhouse retailer and the manufacturer share the cost of the sales teams' initiatives, assisting in the decision to share their profits. This paper considers that demand depends on sales term initiatives in which shortages are allowed and partially backlogged. Two greenhouse inventory cases are studied. In the first case, deterioration can be reduced by preservation technology, and in the second case, deterioration cannot be controlled. The optimal cycle length, preservation technology investment, and sales team initiative are determined to maximize the total profit. Two algorithms are provided to solve these two cases. The suggested model is verified with several numerical examples. A sensitivity analysis is conducted to determine the effects of critical parameters on decisions and obtain managerial insights.