Authors - Patel Nirmal Rajnikant, Ritu Khanna Abstract - We provide a rationale on how businesses can adapt inventory control techniques and simultaneously integrate sustainability strategies to reach economic goals. An up-to-date version of the Economic Order Quantity (EOQ) model is developed with sustainability prerequisites around the greenhouse gas emissions limit and the ratio of renewable resources used during procurement, aiming to lower total inventory cost while observing the legal green compliance requisites. These prerequisites focus on the scope of emissions generated and emissions reduction efforts undertaken by the business. Subordinate to emissions caps, we set forth a decision variable proportional to renewably sourced material per order. Valuable analytical responses to questions related to the impact of cap levels and renewably sourcing on order size, frequency and cost are presented. Numerical example based on business of a medium-sized manufacturing company is implemented. Outcomes reveal that investments for strengthening renewably sourced materials to drive green purchasing significantly improve environmental footprint measurements at reduced cost. Such awareness significantly boosts operation planning cost sustainability objectives.
