Inventory model with trade credit policy and carbon emission preservation technology

Abstract

This study develops an integrated inventory model that incorporates preservation technology, trade credit policy, inflation effects, and carbon emission tax considerations to optimize supply chain performance. Preservation technology is introduced to reduce product deterioration, thereby extending shelf life and improving consumption efficiency, while trade credit policies provide financial flexibility for retailers. The model reflects the growing influence of regulatory frameworks and technological advancements on inventory management, highlighting how these factors shape future commercial applications. By combining financial mechanisms with sustainability measures, the proposed framework offers a holistic approach to inventory control. The model is formulated mathematically and solved using MAPLE software, enabling precise evaluation of inventory costs under varying cycle lengths. Numerical examples validate the model’s applicability, demonstrating significant reductions in overall supply chain costs when preservation and credit policies are effectively integrated. Sensitivity analysis further explores the impact of key parameters-including deterioration rate, inflation, preservation cost, and carbon emission taxes-providing managerial insights into their role in inventory decisions. The findings confirm that integrating sustainability measures with financial and operational policies enhances cost efficiency, supports environmental responsibility, and strengthens supply chain resilience in modern business contexts.