EPQ MODEL TO PRICE-SENSITIVE STOCK DEPENDENT DEMAND WITH CARBON EMISSION UNDER GREEN AND PRESERVATION TECHNOLOGY INVESTMENT

Now-a-days, preserving products and environmental balance are alarming yet greater concerns in competitive market affairs. So, some countries are focused on reducing carbon emission as it is considered to be the key factor for global warming. Most economists promote the carbon cap and carbon tax as an approach to reduce carbon emission. Moreover, the deterioration of any products can be controlled by investing in many preservation technologies as per their respective products. Keeping this in mind, an inventory model for deteriorating items is investigated under a carbon cap and carbon tax policy for a controllable carbon emission by investing in a green technology investment collaborating with preservation technology investment. The proposed model is studied for three cases: (i) with green technology investment, (ii) with preservation technology investment and (iii) with both green and preservation technology investment. The proposed article deals with stock dependent, price sensitive demand. A solution procedure has been proposed for defining the optimal strategies of cycle time, selling price, green technology investment and preservation technology investment that maximizes the total profit in each case. Additionally, numerical examples are studied to validate the model and managerial insights are carried with respect to key parameters.