Balancing sustainability and profitability in inventory management: insights into carbon emissions, consumer demands, payment strategies, and green investments

Manoj Kumar Sharma, Neha Rani and Anshika Rajpal

International Journal of Mathematics in Operational Research, 2025, vol. 32, issue 1, 31-89

Abstract: Optimising inventory management practices is paramount in a world increasingly concerned with environmental stewardship. The present study focuses on four main aspects: a) reducing carbon emissions; b) responsiveness to price and freshness-dependent consumer demands; c) evaluation of payment schemes; d) assessment of investments in preservation and green technologies. By addressing these fundamental components of inventory management, the article offers valuable insights and practical recommendations for businesses striving to align their operations with sustainability goals. Achieving sustainability in inventory management contributes to environmental conservation and enhances competitiveness and long-term profitability. Payment methods wield significant influence in inventory management, impacting cash flow, supplier relations, and sustainability efforts. They serve as tools for sustainability, highlighting the trade-off between cash flow and environmental stewardship. Finally, a few computational instances and sensitivity analyses demonstrate the suggested model's features. The results and sensitivity analysis show that controllable carbon emissions favourably impact overall inventory model profit.

Keywords: inventory management; carbon emissions; price and freshness dependent demand; comparison of payment scheme; preservation technology investment; green technology investment. (search for similar items in EconPapers)
Date: 2025
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