In modern commercial transactions, the use of permissible delay payment options is widespread. Furthermore, the implementation of more rigorous carbon restrictions is compelling enterprises to seek more effective methods of inventory management in order to minimize carbon emissions resulting from their operations. This study advances an inventory model that comprises trade credit resulting default risk for non-instantaneous deteriorated Items (NIDIs) under preservation technology investment (PTI), while also considering partial backlogging and carbon emissions. The model aims to optimize inventory decisions by balancing economic benefits and environmental responsibilities. Trade credit terms are used to stimulate demand but introduce default risk, which is managed alongside the challenges posed by non-instantaneous deterioration of items. PTI is explored as a means to (1) extend the non-deterioration period and (2) reduce the deterioration rate. Partial backlogging is included to handle shortages, while carbon emissions are accounted for under carbon cap-and-trade (CCAT) and carbon tax (CT) regulations. The proposed model provides a comprehensive framework for making informed inventory decisions that maximize profit while adhering to environmental regulations. Numerical examples are used to validate the model, offering managerial insights into the effective integration of these factors in inventory management.
Das et al. (2026) studied this question.