Integrated Inventory Management Strategies: Balancing Preservation Technology and Carbon Tax Policies

This study presents an inventory management framework that integrates preservation technology investments with demand influenced by price and advertisement frequency, while also examining the impact of carbon tax policies. Two models are considered: (i) a baseline model without carbon policies and (ii) an advanced model incorporating carbon tax policies to mitigate environmental impacts. The analysis explores the interplay between preservation technology investments and carbon emissions, providing insights into optimal pricing and replenishment strategies for managing deteriorating inventory with varying initial reference prices. The results highlight the effectiveness of preservation technologies in reducing deterioration rates, stabilizing costs and enhancing inventory quality. To operationalize these strategies, a practical iterative algorithm is developed, and validated through detailed numerical examples and key parameter analyses.