In today’s competitive environment, it is extremely difficult to be successful without considering sustainability. Global warming impacts are becoming more observable in our daily life. Supply chain activities and many logistics activities are the important sources of carbon dioxide (CO2) emission and environmental pollutions. These issues have increased concerns to reduce CO2 emissions amount through the development of an inventory model. This paper incorporates environmental thinking into the inventory model to achieve sustainability .In this paper, we present a green inventory mathematical model which especially focuses on carbon cap-and-trade mechanism which is used to lower carbon emission in practice. One of the primary goals is to assess the environmental influence of various production and/or distribution approaches to reduce the greenhouse gases (GHG) emission through logistics activities. Finally, the paper concludes with a numerical example