An inventory model for the association between retailer and supplier for a finite planning horizon with carbon emission-dependent demand Available to Purchase

As people become more concerned about environmental issues, the effect of carbon emissions on demand becomes more obvious in Bio-materials engineering and manufacturing of other materials. Due to carbon emission and some other factors, a few of the items may deteriorate.in this regard, we have planned to build a Supplier-retailer inventory coordination model for deteriorating items with price and carbon emission dependent demand in a finite planning horizon. In both the centralized and decentralized cases, we are solving the model. The main objective of this research article is to identify the optimal cycle length for each order such that the total cost which is a combination of holding, purchasing cost, deterioration, ordering cost, and carbon emission have become minimal as possible. This study supports retailers and suppliers in reducing total inventory costs and carbon emission by computing the optimal amount of the order and optimal order interval. Finally, we are presenting numerical examples of the suggested method and its optimal results. As well as effects of changing the various parameters on the optimal total cost are also explained in detail graphically and in tabular form. A sensitivity analysis has also been conducted with the help of Mathematica version-12. In addition, several managerial insights are also highlighted. These observations are extremely managerial and informative for businesses seeking profitability while also satisfying their environmental responsibilities, as well as this study is very helpful for the government policy of any nation.