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Effect of preservation on an EPQ model with selling and credit period-dependent demand under carbon tax policy

  • Sachin Kumar Rana , Rahul Kumar , Amit Kumar , Vipin Kumar and Satish Kumar
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Abstract

This study presents an EPQ model for deteriorating goods with a fixed expiration date under selling and credit period-based demand. Two separate preservation rates are considered, and we also find the solution without preservation rates. The EPQ model is developed under the carbon tax policy. Governments must develop carbon emission policies to decrease the environmental and economic harm posed by such greenhouse gas emissions. We solve the model numerically to obtain the required optimal solution and draw the graph of the function. The optimal policy is then examined using a sensitivity analysis to determine how different model parameters affect it.

Abstract

This study presents an EPQ model for deteriorating goods with a fixed expiration date under selling and credit period-based demand. Two separate preservation rates are considered, and we also find the solution without preservation rates. The EPQ model is developed under the carbon tax policy. Governments must develop carbon emission policies to decrease the environmental and economic harm posed by such greenhouse gas emissions. We solve the model numerically to obtain the required optimal solution and draw the graph of the function. The optimal policy is then examined using a sensitivity analysis to determine how different model parameters affect it.

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