A Sustainable Retailer Inventory Model for Deteriorating Green Products with Time-Dependent Advertising and Carbon Emission Taxation

This study presents a sustainable inventory model tailored for a retailer managing deteriorating green products, where demand evolves and is influenced by environmental factors. The model incorporates a linearly increasing advertising schedule to reflect the impact of dynamic promotional efforts on eco-conscious consumer behavior. To curb product deterioration, the retailer can invest in preservation technologies that effectively slow the deterioration rate through a factorial reduction mechanism. The cost framework accounts for both time-sensitive reordering efforts and the diminishing returns of financial investment. Additionally, the model factors in carbon emissions from advertising activities, along with penalties for excess emissions and tax credits for adopting green technologies. The retailer aims to maximize overall profit by jointly optimizing selling price, replenishment timing, advertising intensity, and green investments. Analytical insights demonstrate that coordinated decision-making enhances profitability and reduces product obsolescence and environmental impact. The findings highlight the critical role of integrating marketing strategies with sustainability initiatives, offering a practical guide for retailers aiming to achieve economic efficiency and environmental stewardship.