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The present article aims to determine the green economic policies of an inventory model for non-instantaneous deteriorating items under practical scenarios. These scenarios involve specific maximum lifetimes for items with deteriorations controllable through investments in preservation technologies, which can affect the period without deterioration. Additionally, carbon is emitted due to energy-related costs, prompting retailers to invest in green technology investments to reduce carbon emissions concurrently under the carbon tax policy and the carbon cap-and-trade policy simultaneously. Meanwhile, when a retailer is required to make a prepayment, the purchase discount policy is contingent on the number of installments offered. This means that the retailer prepays off the entire purchasing cost with a single installment, thereby receiving a maximum percentage of price discount. Otherwise, the retailer prepays a certain fraction of the purchasing cost with multiple installments, and the percentage of the price discount will be contingent on the number of n identical installments. In this context, we present theoretical results for optimal solutions, and a salient algorithm is presented, which is derived from these theoretical findings within a sustainable inventory system. To better illustrate the proposed mathematical problems, several numerical examples are presented, followed by sensitivity analysis for different scenarios.
Chiu et al. (Thu,) studied this question.