Is social, economic, and environmental sustainability essential for inventory modelling?

¹ Prestige Institute of Management and Research, Gwalior 474020, Madhya Pradesh, India
² Department of Applied Sciences, Faculty of Engineering and Technology, Parul University, Vadodara 391760, Gujarat, India
³ Department of Mathematics, Gyan Ganga Institute of Technology and Sciences, Jabalpur, India
⁴ Electrical Engineering Department, College of Engineering, King Khalid University, Abha 61421, Saudi Arabia
⁵ Department of Condensed Matter Physics, Saveetha School of Engineering, Saveetha Institute of Medical and Technical Sciences, SIMATS, Chennai, India

^* Corresponding author: janimrudul07@gmail.com

Received: 7 February 2024
Accepted: 28 May 2025

Abstract

Global warming and climate change have become sensitive issues worldwide, and many countries try to control CO₂ emissions by investing in many projects. Businesses are increasingly transitioning from traditional entrepreneurial models to environmentally beneficial approaches prioritising social, economic, and environmental sustainability. This study develops an economic order quantity (EOQ) model for items deteriorating under a trade credit policy and shortages, considering factors such as waste management costs, carbon emissions, and the adoption of green and preservation technologies. The model also incorporates price- and advertising-dependent demand to capture real-world market dynamics. Numerical analysis validates the proposed model with graphical representations that illustrate the concavity of the decision variables. The findings reveal that insufficient investment in preservation technology leads to accelerated product deterioration and higher disposal costs, whereas optimal investment reduces disposal costs and enhances profitability. By adopting green technologies and preservation measures, businesses can effectively reduce carbon emissions, minimize operational costs, and align their strategies with sustainable development goals. These results are especially important for industries that deal with perishable products, providing practical guidance on how to balance environmental sustainability with economic benefits.