Sustainable Production Inventory Model Reveals Financial Implications of Deterioration and Shortages

Strategic Insights -

Growing environmental concerns, especially those related to carbon emissions from production and supply chain activities, have highlighted the need for sustainable practices. Saveetha School of Engineering researchers have investigated a sustainable production-inventory system for a product with a power-pattern demand, considering limited shelf life and gradual deterioration. The analysis integrates carbon emissions from stockholding, transportation, and deterioration, along with the impact of shortages on total costs. The study examines two distinct scenarios: Case I (without deterioration) and Case II (with deterioration), each further divided into two models: one allowing shortages and the other prohibiting them. The primary objective is to determine an optimal production-inventory policy that maximizes profit per unit time while accounting for carbon emission taxes related to transportation, storage, and deterioration.

Key Takeaways:

  • The research proposes a sustainable production-inventory model that considers carbon emissions from stockholding, transportation, and deterioration, as well as the impact of shortages on total costs.
  • The study examines two distinct scenarios: Case I (without deterioration) and Case II (with deterioration), each further divided into two models: one allowing shortages and the other prohibiting them.
  • The primary objective is to determine an optimal production-inventory policy that maximizes profit per unit time while accounting for carbon emission taxes related to transportation, storage, and deterioration.
  • The numerical results demonstrate that the total cost in Case I (without deterioration) is significantly lower than in Case II (with deterioration), with reductions of 24.89% and 22.02%, respectively.
  • The study emphasizes the financial implications of deterioration and shortages on sustainable inventory management.
  • The proposed model offers valuable insights for decision-makers seeking to optimize production cycles, manage carbon footprints, and develop sustainable supply chain policies.

Statistics:

  • 24.89% reduction in total cost in Case I (without deterioration)
  • 22.02% reduction in total cost in Case II (with deterioration)
  • The study investigates a sustainable production-inventory system for a product with a power-pattern demand
  • The analysis integrates carbon emissions from stockholding, transportation, and deterioration
  • The study considers the impact of shortages on total costs

Sources:

  • A Sustainable Production Inventory Model for Power-Pattern Demand with Carbon Emissions and Shelf Life Considerations. International Journal of Computational Intelligence Systems, 2025,18(1):1-32.
  • Saveetha School of Engineering Researchers Reveal New Findings on Sustainability Research (A Sustainable Production Inventory Model for Power-Pattern Demand with Carbon Emissions and Shelf Life Considerations). Global Warming Focus. June 16, 2025; p 518.
  • Saveetha School of Engineering, King Saud University, International Journal of Computational Intelligence Systems, Springer.