Abstract: The management of perishable biological products presents a significant challenge because their quality and usability decline with time. Vaccines, diagnostic kits, biological reagents, pharmaceutical products and other temperature-sensitive biological materials require appropriate inventory policies to minimize deterioration, wastage and storage-related costs. Conventional inventory models generally focus on ordering, holding and shortage costs and may not adequately represent the special characteristics of biological inventories.

This research paper proposes an innovative sustainable inventory model for perishable biological products by incorporating deterioration, uncertain demand, holding cost, shortage cost, quality degradation and waste-disposal cost within a unified framework. The proposed model aims to determine an optimal replenishment policy that minimizes the overall inventory-related cost while maintaining an adequate supply of biological products. The model also considers the economic and environmental consequences of product deterioration and expiry. A mathematical formulation is developed and an illustrative numerical example is presented to demonstrate the applicability of the proposed approach. Sensitivity analysis is used to examine the effect of important parameters, including deterioration rate, demand rate, storage cost and disposal cost, on the optimal inventory policy. The proposed framework provides a useful decision-support approach for healthcare institutions, diagnostic laboratories, pharmaceutical organizations and biological research facilities. The study highlights how innovative inventory modelling can contribute to efficient, economical and sustainable management of biological resources.