This study investigates the effect of carbon policy and green technology in the inventory model, taking into account carbon emissions from the product manufacturing, setup, transportation, storage, and recycling processes. The goal of this study is to help firms determine their optimal order quantity and green investment amount in order to minimize costs under carbon cap and trade policy. This research also has practical implications for the government in terms of developing appropriate policies and regulations to balance the trade-off between environmental protection and economic growth. According to the findings, firms that adopt a carbon tax policy would prefer to invest in a relatively efficient green technology. Finally, the developed model is explained numerically.

Green Inventory, investment in green technology, carbon emissions, cap and trade, carbon reduction for green technology