Trade Credit and Preservation Technologies: An Inventory Replenishment Model for a Sustainable Supply Chain

Abstract

Achieving sustainability within today's competitive environment is highly challenging. Therefore, we proposed a supply chain inventory replenishment model incorporating a finite planning horizon. So, to enhance their profit and lessen the total cost and carbon, this research study examines the investment in green (carbon offset) and preservation technologies. Additionally, we analyzed the trade credit duration granted by suppliers to the retailers. Carbon offsets/green technology represent a prevalent and significant measure to reduce carbon emissions. Time becomes a critical factor influencing demand rates in this context, while the degradation of materials affects a vast number of business sectors. Therefore, the cost of investing in preservation or green technology to control the deterioration of the materials, and reduce environmental emissions, the cost for ordering, the holding cost, and the replenishment cycle duration are all calculated. Consequently, a numerical iterative algorithm is prepared to identify the optimized solution for the supply chain approach for inventory control and management challenges. The optimality and uniqueness of the parameters of the proposed research study are furnished with a theoretical, mathematical, tabular, and pictorial analysis. Also, proposed research studies are provided with managerial implications that provide practical insights for industry practitioners. In conclusion, this research not only contributes valuable theoretical insights but also offers a tangible framework applicable to real-world scenarios.