Abstract: Environmental degradation, climate change, and resource scarcity have intensified the need for sustainable operations across global supply chains. Inventory modelling, traditionally focused on minimizing cost and optimizing operational efficiency, has evolved into a discipline deeply intertwined with environmental considerations, including carbon emissions, ecological footprints, waste management, reverse logistics, and circular economy principles. This paper critically examines the intersection of environmental sustainability and inventory modelling, discussing how economic order quantity (EOQ), production inventory models, stochastic demand systems, and multi-echelon frameworks adapt to environmental constraints. Emerging models such as carbon-regulated EOQ, green production-inventory systems, energy-aware supply chains, and closed-loop inventory systems are analyzed. The research synthesizes recent advancements in green logistics, environmental policy impacts, and optimization algorithms used for sustainable inventory control. Furthermore, the study highlights methodological gaps, ethical concerns, and future research directions emphasizing artificial intelligence (AI), life cycle assessment (LCA), and real-time environmental monitoring.

Keywords: Inventory Modelling, Environmental Sustainability, Green Supply Chains, Carbon Emission EOQ, Closed-Loop Inventory, Sustainable Operations.