Producing 100% high-quality items is a challenging task in today’s era, which often results in the delivery of defective products. Therefore, inspecting the lot becomes a necessity. This paper investigates the impact of environmental concerns on the inventory model by incorporating fuel costs and emission taxes. The objective of the study is to minimize the expected total cost and determine the optimal order quantity. The study includes a numerical example with sensitivity analysis to determine the model’s robustness. The findings of the study indicate that minimizing emissions also reduces the expected total cost. The paper highlights the significance of considering environmental concerns in inventory management. The study highlights the importance of addressing environmental issues in inventory management and provides a framework for minimizing costs while considering the impact on the environment.