Abstract

In today’s world, GHG emission is a crucial problem worldwide. GHG emission is the cause of global warming, which increases the occurrence and frequency of natural disasters. This paper considers a 2-echelon supply chain system consisting of one vendor and one disaster-affected buyer and develops a sustainable vendor-buyer inventory model for disaster relief deteriorating items like medicines, food, etc., under inflation with a technical corporation on investment to reduce GHG emissions. The proposed study considers time-dependent deterioration, inflation’s effects, and GHG emissions, which are critical factors that affect inventory management decisions. This suggested model aims to minimize the inventory system’s overall cost while reducing GHG emissions and ensuring sustainable development. A mathematical framework of the model is developed, and to demonstrate its effectiveness numerical example is provided with the help of MATHEMATICA 12.0. The result shows that the proposed model can achieve a total cost significant reduction in GHG emissions. The numerical results show that the cap-and-trade policy yields the most total profit compared to the carbon tax policy. Sensitivity analysis is carried out to check the sensitive and non-sensitive parameters. The findings of this study have significant implications for organizations committed to sustainability in their inventory management decisions.

Author: Mandeep Singh, Ravish Kumar Yadav, SR Singh, Dipti Singh

Received on: August, 2023

Accepted on: March, 2024