Sustainable production system with preservation strategy and renewable energy under different carbon tax policies

Operational manipulations and effective management of the items which are deteriorating in nature can be handled with an investment in preservation technology. To sustain fit in frequently changing markets, it is quite obvious to address the environmental concern. This paper proposes two different carbon tax mechanisms for a flexible production system. Also, this pricing model is given for deteriorating items, with preservation strategy and renewable energy. Here, it is considered that the rate of deterioration can be minimized by investing in preservation technology. The main objective is to optimize the total profit and at the same time to calculate the carbon tax under the different taxing mechanisms. Moreover, the total profit of the manufacturer is maximized by jointly optimizing the production rate, preservation technology investment, and selling price. Further, numerical manifestation along with sensitivity analysis has been given to exhibit the key features of the model. This model and the managerial implications can be widely applied to the food items, grocery industries, etc.