An Improved EOQ Model for Fresh Agricultural Product Considering Fresh-degree Sensitive Demand and Carbon Emission

Abstract

Due to the serious distribution loss of fresh agriculture products, it attracts more and more attention that how to determine the optimal inventory control strategy, which is one of the research hotspots and difficulties. This study is concerned with an improved Economic Order Quantity (EOQ) model considering fresh-degree sensitive demand and carbon emission, which is proposed to determine the optimum replenishment cycle time and order quantity. In addition, a simulation experiment and sensitivity analysis of parameters (such as carbon emission price, deterioration rate and fresh-degree) are to illustrate the proposed inventory control model, which can provide decision support for the balance of carbon emission cost and inventory cost by adjusting the inventory control strategy. Simulation results show that carbon emission price, deterioration rate and fresh-degree affect the optimal replenishment cycle time and order quantity to some extent. Moreover, suitable carbon emission price can guide fresh retailers to make low-carbon decision through balancing operation cost, carbon emission, deterioration cost and fresh loss cost.