Sustainable Inventory Management for Noninstantaneous Deteriorating Products: A Circular Economy Approach

In this research paper, we present a comprehensive circular inventory control model for noninstantaneous deteriorating products, incorporating preservation technology, advanced payment schemes, and carbon emission regulations. The model assumes that demand is stock-dependent and follows a linear relationship where higher stock levels encourage more purchases. In fresh products, there is no deterioration in the initial period, but once this phase ends, deterioration begins at a constant rate, which can be mitigated through investments in preservation technology. A circular economy approach is applied, integrating waste reduction and carbon emission policies, including carbon tax and cap-and-trade mechanisms. A numerical example to illustrate the model and sensitivity analysis is conducted across various scenarios to assess the impact of key parameters, such as base demand, preservation costs, and emission factors, on the replenishment cycle and overall cost. The paper concludes with suggestions for possible future research.