Impact of carbon emission and learning effect on dual channel supply chain with deteriorating items

Abstract

This study examines inventory and pricing decisions in a dual-channel supply chain for deteriorating products, where demand is influenced by price, advertisement, and time dependency, along with the learning effect and inflationary factors. The supply chain consists of both online and offline sales channels, where the deterioration of products over time significantly affects decision-making. A mathematical model is developed to capture the dynamic interactions between pricing strategies, advertising efforts, and inventory control, considering demand fluctuations over time. Additionally, the model incorporates the learning effect, which reflects improvements in production and cost efficiency, as well as the impact of inflation on product pricing and costs. The analysis provides insights into how supply chain managers can optimize inventory levels and pricing policies to balance profitability and customer demand in a rapidly changing environment. Key factors such as product deterioration, inflation, and evolving consumer behaviour are examined to formulate effective strategies for managing dual-channel operations. Numerical experiments are conducted to validate the model and highlight the practical implications of the findings for supply chain optimization.