Sustainable Inventory System for Decaying Products with Advertisement, Price, and Time-Sensitive Demand, and Expiration Date

Sustainability is essential for growing environmental concern especially those related to carbon emissions by the supply chain, and production. In today’s era, mitigating carbon emissions, and waste has become a major concern for a manufacturing firm or industry. Different tax policies are employed for high-emission industrial, and commercial activities. This study proposes a sustainable inventory system for decaying products that are socially, economically, and environmentally savvy. It is assumed that the demand is advertisement, price, and time-sensitive. The price and advertisement of a product attract the customers to buy more or less. Most of the products have a fixed life span or expiration date for maintaining their quality in original properties. Therefore, the customers prefer the products of maximum life span. This model is designed with a sustainable goal that the incurred total cost is minimized over a planning horizon, together with the determination of optimal price, time period of positive inventory, and the cycle length. The practical utility, and a better understanding of this model are shown with the help of a numerical example. A sensitivity analysis of some crucial parameters is conducted, and it is based on their variations.