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Notation | Explanation |
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| order quantity (decision variable) |
| initial inventory level, that is, reorder level |
| transportation time |
| length of replenishment cycle, . (decision variable) |
| inventory level in the process at time , and represent |
| transportation and sale processes. |
| demand rate at time , , where and |
| represent the initial demand and elasticity coefficient. |
| deterioration rate at time , , where and . |
| selling price per unit product |
| setup cost in transportation and ordering processes |
| transportation and ordering cost per unit product |
| holding cost per unit product in the th process, and represent |
| transportation and sale processes, respectively. |
| cost of spoilage treatment per unit product |
| fixed carbon emissions for each order |
| carbon emissions per unit product for each order |
| carbon emissions per unit product in the th process, and |
| represent transportation and sale processes. |
| carbon emissions generated from treating unit spoilage product |
| quota of carbon emissions given by government |
| trading price of unit carbon emission permit |
| tax for unit carbon emission |
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