Development Inventory Model of Price-Dependent Perishable Products in Sustainable Environment

  • Bapi Raju Vangipurapu
  • Rambabu Govada
  • Narayana Rao Kandukuri
Conference paper
Part of the Lecture Notes in Mechanical Engineering book series (LNME)


In this paper, an inventory model, which maximizes the profit of the vendor, in a sustainable environment is developed. It is assumed that the vendor supplies price-sensitive perishable goods. This model determines the optimal order quantity and the optimal price of the items. First, a model is developed without taking sustainability into consideration. This model is then used as a basis for the second model which takes sustainability into account. The second model incorporates carbon tax, imposed on freight transportation, into the base model. It is found that, in the second model, the optimal order quantity decreases and the optimal price of the item increases. A sensitivity analysis is also carried out on the second model by varying the carbon tax. It is found that the profit decreases more or less linearly with the tax rate in the second model.


Perishable items Price-dependent Sustainability Carbon print 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Bapi Raju Vangipurapu
    • 1
  • Rambabu Govada
    • 2
  • Narayana Rao Kandukuri
    • 3
  1. 1.Department of Mechanical EngineeringV. R. Siddhartha Engineering CollegeVijayawadaIndia
  2. 2.Department of Mechanical EngineeringAndhra UniversityVisakhapatnamIndia
  3. 3.Department of Mechanical EngineeringGovernment Polytechnic CollegeVijayawadaIndia

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