Sustainable Inventory Models for Raw Material Procurement: Integrating Environmental Resource Management in Manufacturing
Abstract
Efficient raw material procurement systems play a critical role in advancing environmental sustainability in manufacturing industries. This study presents mathematical inventory models designed to optimize procurement decisions while minimizing environmental impacts such as waste, excessive resource consumption, and energy use. By incorporating deterministic and variable demand scenarios, the models allow manufacturers to align inventory levels with both production needs and sustainable resource use strategies. The raw material procurement inventory model uses two major time elements (periods and circles) to describe procurement and replenishment quantities from several possible sources. Periods are the elapsed time elements between reviews of the stock position while circle is the number of periods occurring between successive procurement actions associated with a sequence of decisions over a period of time in which demand varies. Results from the numerical illustration show that optimized inventory management not only reduces procurement costs but also supports environmentally responsible operations. These findings highlight the synergy between operational efficiency and environmental stewardship in industrial systems.
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