Integrating EOQ Model and Green Technology for Sustainable Inventory System with Environmental Cost Considering Imperfect Quality Items and Time Dependent Demand

Abstract

The Economic Order Quantity (EOQ) model for a sustainable inventory system with imperfect-quality items is developed with the primary objectives of reducing carbon emissions and conserving the natural resources. The traditional inventory model that already exists has less consideration for the sustainable environment. Sustainable inventory model includes the green technology to minimize carbon emission and maximize the profit. The required costs are derived and to evaluate the mathematical model, an example is solved. The values of cycle time, optimum order quantity and the total profit are determined. The incorporation of green costs into the inventory model is intended to mitigate environmental impacts while enhancing overall profitability. The objective function of the mathematical model is to find the total profit that includes environmental cost or green cost. The total profit it difference between sales revenue and total costs. Furthermore, green investment plays a crucial role in conserving natural resources, promoting environmental sustainability, and ensuring the availability of these resources for future generations.