Inventory Management and Green Marketing Strategies in the Presence of Preservation Technology for Deterioration, under Trade Credit

Abstract

Introduction: This paper presents an economic order quantity framework that combines inventory management, green marketing strategies. The influence of preservation technology on both deterioration and trade credit in the framework of Economic Order Quantity (EOQ) perspective has been examined. As businesses strive for sustainability and environmental responsibility, the intersection of inventory optimization and green marketing becomes increasingly critical. We develop a comprehensive model that accounts for the trade-offs between traditional inventory management practices and sustainable, green marketing initiatives. Our model incorporates the effects of product deterioration, the utilization of preservation technology, and the influence of trade credit on inventory decisions. Through analytical and numerical analyses, we evaluate the proposed model's performance in optimizing inventory decisions while promoting green marketing practices. The findings provide valuable insights for businesses seeking to enhance their environmental performance while maintaining efficient inventory management practices.

Objectives: The objective is to strike a balance between maximizing costs, ensuring product quality, and aligning with environmentally conscious marketing strategies.

Methods: The influence of preservation technology on both deterioration and trade credit in the framework of Economic Order Quantity (EOQ) perspective has been examined. As businesses strive for sustainability and environmental responsibility, the intersection of inventory optimization and green marketing becomes increasingly critical. . Through analytical and numerical analyses, we evaluate the proposed model's performance in optimizing inventory decisions while promoting green marketing practices.

Results: Firstly, concerning the product price, there exists a clear positive correlation between the price and green level, indicating that higher prices lead to an increase in the green level. Additionally, this positive correlation extends to total profit, with higher prices consistently resulting in greater overall profitability. The observation of total profit across price increments underscores the strategy of increasing prices within the observed range, as it is associated with a steady and positive growth in total profit. Examining the parameter Zeta, its impact on both the green level and total profit is less pronounced. There is only a slight variation in the green level as Zeta changes, and the total profit does not exhibit a consistent trend, showing small variations without a clear pattern.

Conclusions: In conclusion, the interplay of pricing, purchasing costs, and demand rates plays a crucial role in determining both the green level and total profit. Understanding these relationships is essential for optimizing the system for maximum profitability and green level.