Trade-credit and green-financing inventory optimisation for perishables with emission regulation and preservation technology investment

Introduction Amid rising environmental regulations and increasing industry demand for sustainable operations, inventory management must balance environmental responsibility with operational efficiency. This study proposes a green inventory model that addresses key challenges such as product deterioration, carbon emissions, and financial constraints. The model incorporates preservation technology investments to prolong product shelf life and minimize deterioration. It further integrates trade credit and green financing to strengthen cash flow and promote sustainable investment. To consider the cost of emissions, carbon emission regulatory costs such as carbon tax and cap-and-trade policies are incorporated into the decision framework. Methods The objective is to minimize the total inventory cost by optimizing the order quantity, replenishment cycle time, and investment in preservation technology, subject to both environmental and financial constraints. To effectively solve the resulting complex and non-linear optimisation problem, metaheuristic techniques such as genetic and bat algorithms are incorporated. A series of numerical experiments were conducted to validate the performance of the proposed model under various parameter settings. A graphical analysis reveals that the total cost function has a convex profile over the feasible continuous domain of the decision variables. Results The findings suggest that strategic alignment of operational and environmental objectives can enhance profitability while advancing carbon-conscious inventory practices. The convexity of the cost function indicates the existence of a unique global minimum. Discussion Management insights are drawn to inform strategic decision-making. The integrated approach offers a viable pathway for firms seeking to align economic performance with sustainability goals in the context of perishable inventory systems.

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Publication Details

Journal
Frontiers in Sustainable Food Systems
Published
2026-03-03
DOI
https://doi.org/10.3389/fsufs.2026.1727245
Primary Topic
Supply Chain and Inventory Management
Type
article
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article

Trade-credit and green-financing inventory optimisation for perishables with emission regulation and preservation technology investment

Jayashri P., Umamaheswari S
Frontiers in Sustainable Food Systems
Supply Chain and Inventory Management
article

Trade-credit and green-financing inventory optimisation for perishables with emission regulation and preservation technology investment

Jayashri P., Umamaheswari S
article en

Abstract

Introduction Amid rising environmental regulations and increasing industry demand for sustainable operations, inventory management must balance environmental responsibility with operational efficiency. This study proposes a green inventory model that addresses key challenges such as product deterioration, carbon emissions, and financial constraints. The model incorporates preservation technology investments to prolong product shelf life and minimize deterioration. It further integrates trade credit and green financing to strengthen cash flow and promote sustainable investment. To consider the cost of emissions, carbon emission regulatory costs such as carbon tax and cap-and-trade policies are incorporated into the decision framework. Methods The objective is to minimize the total inventory cost by optimizing the order quantity, replenishment cycle time, and investment in preservation technology, subject to both environmental and financial constraints. To effectively solve the resulting complex and non-linear optimisation problem, metaheuristic techniques such as genetic and bat algorithms are incorporated. A series of numerical experiments were conducted to validate the performance of the proposed model under various parameter settings. A graphical analysis reveals that the total cost function has a convex profile over the feasible continuous domain of the decision variables. Results The findings suggest that strategic alignment of operational and environmental objectives can enhance profitability while advancing carbon-conscious inventory practices. The convexity of the cost function indicates the existence of a unique global minimum. Discussion Management insights are drawn to inform strategic decision-making. The integrated approach offers a viable pathway for firms seeking to align economic performance with sustainability goals in the context of perishable inventory systems.

Frontiers in Sustainable Food SystemsVol. 10
Vellore Institute of Technology University (IN)
Openalex Percentile: Top 17%
Supply Chain and Inventory Management
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