Greening efforts and deteriorating inventory policies for price-sensitive stock-dependent demand

Abstract

Ecological safety and greening efforts are the highly addressed challenge for business enterprises. Greening efforts are the steps that are taken to reduce the role of trade activities on nature, to guarantee environmentally friendly products. Greening efforts not only help to improve the quality but also tends to increase the profit level of the retailers. In this article, an inventory model for perishable products is formulated for price and stock-dependent demand rate along with greening efforts. Instead of constant purchase cost, the problem deals with order size-dependent purchase cost by assuming all-units quantity discounts. The holding cost is the function of storage time and unit purchase cost as it increases with time. The objective is to calculate the retailer’s profit function with respect to cycle time, selling price, and greening effort. An algorithm is developed to solve the feasible solution. The concavity of the feasible solution is proved through graphs. A numerical example is calculated and sensitivity analysis is done to signify the effect of inventory parameters on decision variables.

KEYWORDS:

• Greening effects
• deteriorating inventory
• stock-dependent demand
• all-units quantity discount
• size-dependent purchase cost

Acknowledgment

All the authors are thankful to DST-FIST file # MSI-097 for technical support to the Department of Mathematics, Gujarat University. The second author (Kavita Rabari) is funded by a Junior Research Fellowship from the Council of Scientific & Industrial Research (file no.-09/070(0067)/2019-EMR-I) and the third author (Ekta Patel) would like to extend sincere thanks to the Education Department, Gujarat State for providing scholarship under ScHeme of Developing High-quality research(Ref no: 201901380184).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by CSIR: [Grant Number (file no.-09/070(0067)/2019-EMR-I)]; ScHeme of Developing High quality research: [Grant Number (Ref no: 201901380184)].

Notes on contributors

Nita H. Shah

Prof. Nita received her PhD in statistics from Gujarat University in 1994. She id HOD of the department of mathematics, Gujarat University, India. She has published 13 monograph, 5 textbooks and 475+ peer-reviewed research papers. She is fellow of AIMS and ISCA. Her research include inventory modelling in the supply chain, robotic modelling, mathematical modelling of infectious diseases.

Kavita Rabari

Kavita Rabari achieved her master degree in mathematics (2018). She is persuing her Ph.D. degree in inventory management, since 2019. She is Assistant Professor at department of mathematics, DKV arts and science college.

Ekta Patel

Ekta patel holds a master's degree in mathematics at MS. university, Baroda in 2010. Since august 2019, she is a research scholar (Ph.D.) at Gujarat University in inventory management. She got her M.Phil. degree in 209 from Gujarat University.