Optimizing a Sustainable Inventory Model Under Limited Recovery Rates and Demand Sensitivity to Price, Carbon Emissions, and Stock Conditions

The recovery, rework, or remanufacturing of returned products has received significant attention, leading to considerable advancements in green supply chain management. However, the impact of recovery mechanisms under demand sensitivity remains understudied. This study develops a sustainability model that incorporates limited recovery rates and demand sensitivity to price, carbon emissions, and stock conditions. The analysis investigates the difference in profit when considering recovery and proposes a procedure for deriving optimal solutions using two key decision variables: unit sales price and cycle time, within a nonlinear profit model. The findings show that (i) the increase in total profit is significant and (ii) both sellers and consumers benefit from this mechanism. In addition, total profit is 15% higher, while the total cost is 22% lower than in the case without recovery. Consumers can purchase products at lower prices (−12%), and sellers can sell more products (+4%), thereby earning higher profit (+15%). Such a win–win policy aligns with environmental, social, and governance (ESG) regulations and supports a healthy, long-term supply chain relationship. Numerical examples and sensitivity analysis illustrate the characteristics of the proposed model. The results also provide managerial insights into enterprises’ limited recovery capacity.

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Publication Details

Journal
Mathematics
Published
2025-09-09
DOI
https://doi.org/10.3390/math13182916
Citations
1
Primary Topic
Sustainable Supply Chain Management
Type
article
Field-Weighted Citation Impact
2.23

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article

Optimizing a Sustainable Inventory Model Under Limited Recovery Rates and Demand Sensitivity to Price, Carbon Emissions, and Stock Conditions

Xi-Bin Lin, Jonas C.P. Yu, Jen Ming Chen
1 citations
Mathematics
Sustainable Supply Chain Management
2.23
article

Optimizing a Sustainable Inventory Model Under Limited Recovery Rates and Demand Sensitivity to Price, Carbon Emissions, and Stock Conditions

Xi-Bin Lin, Jonas C.P. Yu, Jen Ming Chen
article en
1 citations

Abstract

The recovery, rework, or remanufacturing of returned products has received significant attention, leading to considerable advancements in green supply chain management. However, the impact of recovery mechanisms under demand sensitivity remains understudied. This study develops a sustainability model that incorporates limited recovery rates and demand sensitivity to price, carbon emissions, and stock conditions. The analysis investigates the difference in profit when considering recovery and proposes a procedure for deriving optimal solutions using two key decision variables: unit sales price and cycle time, within a nonlinear profit model. The findings show that (i) the increase in total profit is significant and (ii) both sellers and consumers benefit from this mechanism. In addition, total profit is 15% higher, while the total cost is 22% lower than in the case without recovery. Consumers can purchase products at lower prices (−12%), and sellers can sell more products (+4%), thereby earning higher profit (+15%). Such a win–win policy aligns with environmental, social, and governance (ESG) regulations and supports a healthy, long-term supply chain relationship. Numerical examples and sensitivity analysis illustrate the characteristics of the proposed model. The results also provide managerial insights into enterprises’ limited recovery capacity.

MathematicsVol. 13(18)
National Central University (TW), Takming University of Science and Technology (TW)
National Science and Technology Council
Openalex Percentile: Top 9%
Sustainable Supply Chain Management
2.23
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