Inventory Model for Culture and Creative Product Through The Investment In Green Technology

Abstract

Industrial growth is one of the main aspects of a country’s development. The risk associated with industrial development comprises higher pollution levels, overuse of natural resources and increased amounts of waste threat to ecosystems. Pollution caused by hazardous substances, production and transportation process from industry and the overuse of natural resources brings sustainable development at considerable risk. Culture and creative industries creates a new trend in the world and has its own identity. Although these industries are being successful, it also contributes to an impact of environmental sustainability, since different types of products are produced with various sizes and shapes under various production rates. As the production rate increases, emission to the environment also increases slightly. These emissions can be reduced to some extent by investment on green technologies. This paper develops a study of green inventory model for culture and creative products with emission reduction investment. Incorporation of green investment in reducing carbon emissions of the production process is considered. The proposed model maximizes the total profit of the system by finding the optimal solution for selling price, replenishment time interval, number of shipments and green investment amount. Finally, a numerical example is presented to explain the developed model.