Sustainable Green Production Model for Carbon Emission and Recycling Productivity in Circular Economic Optimization

Abstract This study develops a mathematical model for sustainable production inventory management, focusing on carbon impact and recycling in a two-stage production setting. The novel model is based on three perspectives: (a) a sustainable economic production model under carbon emissions from manufacturing and inventory storage, (b) a sustainable economic production model that incorporates the process of recycling and disposal, and (c) circular economic optimization that promotes carbon emissions and recycling. The main objective of this research is to optimize the total cost function and address environmental concerns related to green products. The optimal total cost function, production setup costs, holding costs, screening costs, rework costs, carbon emission costs, and recycling costs are calculated. Managerial insights highlight the importance of effectively managing reusable items and ensuring proper disposal to support environmental sustainability and maintain a circular economy. A numerical example is used to verify the realism of the proposed model in the prediction of cost-effectiveness and visualization via MATLAB software. The sensitivity analysis indicated the importance of reducing production-based carbon emissions and improving recycling levels to minimize the total cost function in the path to enhancing the sustainable environment.