Joint Pricing and Inventory Optimization with Time-Variant Holding Cost and Green Technology Investment

Introduction: Investing in green technology and preservation technology represents a viable alternative for retailers aiming for sustainability is a supply chain. Objectives: In this paper, we examine an inventory model for a deteriorating product. The demand varies with a change in selling price and is also influenced by investment in green technology investment by the retailer to reduce spoilage. Holding cost is dependent on time. The spoiled products are sold at a lesser cost to reduce wastage and carbon emission. Methods: This study presents three mathematical models involving decision variables as cycle time, cycle time and green investment, cycle time and selling price. A study to analyse the profit, firstly with an increase in selling price and secondly with an increase in green investments. A comparative study is shown using a numerical example for optimal profit. Optimal values are calculated using MATHEMATICA. Sensitivity analysis is done to study effect of parameters on optimal solution. Results: Optimal values are further investigated for different parameters to further optimize the profit in three models by 21.59%, 23.24%, 8.75% respectively with some reference values. The optimal values are substantiated by graphical representations. Conclusions: The pricing policy and green investment impacts the profit gain.