Title: Development of two-shop inventory model with multi-variate demand and screening errors under controllable carbon emission

Authors: Sundar Lal; Ashok Kumar; Sandeep Kumar

Addresses: Department of Mathematics, Hans Raj College, University of Delhi, Delhi, India ' Department of Mathematics, Meerut College, Meerut, India ' Department of Mathematics, Hans Raj College, University of Delhi, Delhi, India

Abstract: This study proposes an inventory model for the retailer by considering two shops under single management. This study considers that: 1) receive lot contains defective items; 2) manual screening process is carried out which is an erroneous process; 3) demand is multi-variate; 4) carbon emissions due to operational activities linked to inventory which is regulated by cap-and-tax policy; 5) capital investment in green technology to curb carbon emission. The present study aims to determine the values of order quantity and backorder level that optimise the retailer's profit. Developed model is illustrated with the help of numerical analysis as well as sensitivity analysis. In the end, the effect of promotion activities, selling price, cap-and-tax regulation policy, and investment in green technology on the optimal decision have been analysed. Based on the analysis, managerial implications are also presented.

Keywords: EOQ; imperfect lot; screening error; cap-and-tax regulation; carbon emissions; multi-variate demand; two-shop management.

DOI: 10.1504/IJOR.2025.143976

International Journal of Operational Research, 2025 Vol.52 No.1, pp.51 - 78

Accepted: 30 Nov -0001
Published online: 16 Jan 2025 *

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