Optimising fresh produce demand with expiration date and carbon mitigation strategies under learning effect and nonlinear holding cost: a quadratic modelling approach of time-price-freshness for profit maximisation

In today's health-conscious society, there is a growing demand for fresh produce. This demand depends on factors like freshness, visibility, expiration date, and pricing, influencing customer purchases. This article suggests modelling fresh produce demand as quadratic function, incorporating freshness, price, shelf space, and expiration date under learning effects and with nonlinear holding costs. Surprisingly, it proposes maintaining significant stock towards replenishment cycle ends, challenging the zero-ending inventory norm. Simultaneously, nations are tackling carbon emissions as a major driver of global warming. Economists endorse carbon cap and tax policies. To optimise strategies (cycle time, price, and green technology), a systematic approach is proposed for profit maximisation. Numerical example validates this model, offering insight to ideal pricing, ending inventory, replenishment cycle, and backroom clearing timing, and ordered quantity. Classical optimisation techniques compute these values. Moreover, by analysing eigenvalues of a Hessian matrix, the convexity of profit function is established. A numerical illustration and sensitivity analysis on inventory parameters verify the model, yielding vital managerial insights. In essence, this article explores fresh produce demand modelling and carbon mitigation strategies while providing practical optimisation solutions and empirical validation.