Optimizing Eco-Friendly Inventory Investment for Deteriorating Products with Carbon Emission Control and Demand Sensitivity: A Pythagorean Fuzzy Approach under Cap-and-Trade Policies

This study presents an eco-friendly inventory investment model for deteriorating products, focusing on sustainable practices under a carbon cap-and-trade policy. The model incorporates demand factors such as advertising, price, stock levels, and the ratio of herbal to chemical ingredients to meet consumer interest in environmentally friendly products. Additionally, the model includes partial backlogging and leverages preservation technology to mitigate deterioration. A unique Pythagorean fuzzy approach is used to address uncertainties in cost parameters, and a mathematical framework optimizes the total profit by considering carbon emissions from inventory processes. The results show that optimal inventory management under a sustainable environment and emission regulation yields higher profitability while reducing environmental impact. Sensitivity analysis highlights the critical role of price and demand sensitivity in profit optimization, providing strategic insights for decision-makers focused on green inventory investments.