Advertisement

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

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

Abstract

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.

Keywords

Perishable items Price-dependent Sustainability Carbon print 

References

  1. 1.
    Leitch H, Ahuja V, Jabbar M India’s livestock sector: demand growth, food security and public investment–issues and optionsGoogle Scholar
  2. 2.
    Márquez-Ramos L (2015) The relationship between trade and sustainable transport: a quantitative assessment with indicators of the importance of environmental performance and agglomeration externalities. Ecol Ind 52:170–183CrossRefGoogle Scholar
  3. 3.
    Mathivathanan D, Kannan D, Haq AN (2018) Sustainable supply chain management practices in Indian automotive industry: a multi-stakeholder view. Resour Conserv Recycl 128:284–305CrossRefGoogle Scholar
  4. 4.
    Ghare PM, Schrader GH (1963) A model for exponentially decaying inventory system. Int J Prod Res 21:449–460Google Scholar
  5. 5.
    Nahmias S (1982) Perishable inventory theory: a review. Oper Res 30(4):680–708MathSciNetCrossRefGoogle Scholar
  6. 6.
    Raafat F (1991) Survey of literature on continuously deteriorating inventory models. J Oper Res Soc 42(1):27–37CrossRefGoogle Scholar
  7. 7.
    Goyal SK, Giri BC (2001) Recent trends in modeling of deteriorating inventory. Eur J Oper Res 134(1):1–16MathSciNetCrossRefGoogle Scholar
  8. 8.
    Bakker M, Riezebos J, Teunter RH (2012) Review of inventory systems with deterioration since 2001. Eur J Oper Res 221(2):275–284MathSciNetCrossRefGoogle Scholar
  9. 9.
    Janssen L, Claus T, Sauer J (2016) Literature review of deteriorating inventory models by key topics from 2012 to 2015. Int J Prod Econ 182:86–112CrossRefGoogle Scholar
  10. 10.
    Sana S, Goyal SK, Chaudhuri KS (2004) A production–inventory model for a deteriorating item with trended demand and shortages. Eur J Oper Res 157(2):357–371MathSciNetCrossRefGoogle Scholar
  11. 11.
    Mukhopadhyay S, Mukherjee RN, Chaudhuri KS (2004) Joint pricing and ordering policy for a deteriorating inventory. Comput Ind Eng 47(4):339–349CrossRefGoogle Scholar
  12. 12.
    Alfares HK, Ghaithan AM (2016) Inventory and pricing model with price-dependent demand, time-varying holding cost, and quantity discounts. Comput Ind Eng 94:170–177CrossRefGoogle Scholar
  13. 13.
    Ellerman AD, Convery FJ, De Perthuis C (2010) Pricing carbon: the European Union emissions trading scheme. Cambridge University PressGoogle Scholar
  14. 14.
    Glover JL, Champion D, Daniels KJ, Dainty AJD (2014) An institutional theory perspective on sustainable practices across the dairy supply chain. Int J Prod Econ 152:102–111CrossRefGoogle Scholar
  15. 15.
    Gautam P, Khanna A (2018) An imperfect production inventory model with setup cost reduction and carbon emission for an integrated supply chain. Uncertain Supply Chain Manag 6(3):271–286CrossRefGoogle Scholar
  16. 16.
    Hua GW, Cheng TCE, Zhang Y, Zhang JL, Wang SY (2016) Carbon-constrained perishable inventory management with freshness-dependent demand. Int J Simul Modell (IJSIMM) 15:3Google Scholar
  17. 17.
    Taleizadeh AA, Noori-daryan M, Cárdenas-Barrón LE (2015) Joint optimization of price, replenishment frequency, and replenishment cycle and production rate in vendor managed inventory system with deteriorating items. Int J Prod Econ 159:285–295CrossRefGoogle Scholar
  18. 18.
    Ai XY, Zhang JL, Wang L (2017) Optimal joint replenishment policy for multiple non-instantaneous deteriorating items. Int J Prod Res 55(16):4625–4642CrossRefGoogle Scholar
  19. 19.
    Shabani S, Mirzazadeh A, Sharifi E (2014) An inventory model with fuzzy deterioration and fully backlogged shortage under inflation. SOP Trans Appl Mathematics 1(2):161–171CrossRefGoogle Scholar

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

Personalised recommendations