Abstract

This paper presents an Economic Production Quantity (EPQ) inventory model for deteriorating items by incorporating preservation technology and price-dependent demand in a continuous review system. Preservation technology is assumed to reduce the deterioration rate, while energy consumption associated with preservation generates carbon emission costs, reflecting environmental considerations. Demand is modeled using linear, exponential, and logarithmic price-dependent functions to represent different market behaviors. Inventory dynamics during production and depletion phases are described using differential equations, and a profit function is developed to determine the optimal selling price. A comparative demand analysis is conducted to examine the effect of different demand structures on profitability and inventory cycle length under carbon emission considerations. Numerical results and sensitivity analysis illustrate the impact of price sensitivity and carbon cost on system performance. The model provides useful managerial insights for balancing pricing decisions, inventory control, and environmental responsibility.

Author

Jitendra Kumar  ( Pages 37-56 )
Email:jitte.dm@gmail.com
Affiliation: Department of Mathematics, Marwari College, L.N. Mithila University, Darbhanga, Bihar      DOI:

Keyword

Preservation technology; Carbon emission; Comparative demand behavior; Pricing strategy; EPQ inventory model.

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