A Study on the Effect of Investment in Green Technology Inventory Model Under Cap and Trade Policy with Sustainable Environment

Resumen

This study presents the effect of investment in green technology inventory model under cap
and trade policy with sustainable environment. The primary cause of global warming is due
to carbon emission. Therefore, the consideration of carbon emission has become crucial for
developing an inventory model. In this paper, the carbon emissions from product production,
setup, manufacturing, storage and recycle are considered here. Also, the pre-payment option
is taken into account together with a one-time flat discount on the product’s selling price and
the fixed preservation investment is introduced. Green technology investment aids people in
reversing the harmful impacts of human activity on the ecosystem, which has a long-term
major influence on the environment. Sustainability assists in lowering environmental harm
from pollution and carbon emissions. In order to reduce the total cost under cap and trade
system, the aim of this study is to help the companies to determine their corresponding
optimal order quantity and optimal amount of green investment. Furthermore, a numerical
example is provided to explain the developed model.