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This analysis demonstrates that integrating preservation technologies and markdown strategies can significantly reduce carbon emissions and enhance profitability.
This research addresses the urgent global need for sustainable practices by examining production systems that integrate preservation technologies and markdown strategies to achieve both economic and environmental objectives. To tackle the issue of product deterioration, the study implements preservation technology investment that slows down spoilage, along with markdown policies to boost demand and streamline inventory management. This dual strategy not only improves profitability by minimizing waste but also enables efficient product turnover. A central focus of the study is on reducing carbon emissions through the integration of renewable energy sources, demonstrating how this approach can yield significant cost savings and reduce the overall carbon footprint. Additionally, the research explores the role of carbon-cap policies, which incentivize emission reductions. A detailed mathematical model is developed with demand dependent on energy consumption to optimize decision variables, including pricing, cycle time, markdown rates, preservation investment, and energy allocation. Sensitivity analysis and graphical insights guide stakeholders in balancing financial and ecological goals, with results showing renewable energy investment cuts emission costs by 9.23%, while preservation and markdown strategies boost profit by 22.9%. Integrating all three strategies yields a 23.17% profit increase and a 7.32% emission reduction, underscoring the strength of a unified sustainable approach.
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Rao et al. (2025) studied this question.
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