Optimal Utilization of Port Free-of-Charge Storage for Non-Instantaneously Deteriorating Items with Time-Varying Order Quantity Dependent Demand with Green Technology Investment during Transit

This paper presents an innovative inventory model for non-instantaneously deteriorating items with time-varying order quantity-dependent demand. The model strategically utilizes port-provided free storage periods to optimize inventory management across a distribution system comprising one port storage and an owned storage. While most industries rely on owned or rented warehouses to store goods before distributing them to retailers, this model proposes a more cost-efficient approach by leveraging the port’s free storage period as a temporary warehouse until the free duration expires. By investing in energy-efficient green equipment, this approach decreases carbon emissions during product transit between the port and warehouse, as well as to industries. This allows companies to delay the incurrence of holding costs and optimize resource allocation, thereby minimizing total inventory costs while maintaining service levels. The model’s theoretical foundation is verified using numerical examples, which emphasize significant findings on cost optimization and efficient inventory dynamics. Additionally, a comprehensive sensitivity analysis conducted using MATLAB reveals the impact of various parameter modifications, offering valuable insights for decision-makers across diverse industrial settings.