A Three-Level Refrigeration Supply Chain Inventory Model Including Linear Time-Dependent Demand for Temperature-Sensitive Items Considering Carbon Tax Regulations

In this inventory model, a production process system is explained. In this research, we investigate a retailer, supplier, and manufacturer’s combined inventory replenishment decisions or production and besides this, the incentive to invest in reducing carbon emissions underneath the greenhouse gas emission regulation strategy. This research looks at some temperature-sensitive item that deteriorates at a constant rate. A “break-even” point is established in this article where Q1 + Q2 is the optimal quantity produced by the manufacturer until the “break-even” point. Thereafter Q2 amount is to be spent in the remaining ongoing unequal cycles until the produced total quantity Q2 is transported to the retailer. Q1 is required to be larger than Q2. Furthermore, the demand rate is a linear function dependent upon time under a finite period. To satisfy customer demand, the manufacturing rate is postulated to be larger than the demand rate. To exhibit the proposed model, a numerical instance, scenario analysis, and their tabular, as well as graphical representation, are furnished. With the help of Mathematica software, optimality was also discussed for unequal replenishment time over the finite planning horizon. The present research in this kind of area has been rigorously analyzed and summarized. Eventually, managerial suggestions and future recommendations have been also explained.