Shipment Policy for an Economic Production Quantity Model Considering Imperfection and Transportation Cost

Mubashir Hayat, Bashir Salah, Misbah Ullah, Iftikhar Hussain and Razaullah Khan
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Mubashir Hayat: Department of Mechanical Engineering, Jalozai Campus, University of Engineering and Technology, Peshawar 24240, Pakistan
Bashir Salah: Industrial Engineering Department, College of Engineering, King Saud University, P.O. Box 800, Riyadh 11421, Saudi Arabia
Misbah Ullah: Department of Industrial Engineering, University of Engineering and Technology, Peshawar 25120, Pakistan
Iftikhar Hussain: Department of Industrial Engineering, University of Engineering and Technology, Peshawar 25120, Pakistan
Razaullah Khan: Department of Mechanical Engineering Technology, University of Technology, Nowshera 24100, Pakistan

Sustainability, 2020, vol. 12, issue 21, 1-16

Abstract: Determining replenishment lot size and number of shipments in a traditional production setup has been of great interest among researchers during the last decades. In order to survive modern competition, the manufacturer has to make good decisions about the lot size that is to be shipped to the retailer. Recently, several researchers have developed mathematical models for modelling different real-world situations; however, these models are lacking due to a combination of imperfection in process and shipment lot sizing. Therefore, in the proposed research, shipment policy for an imperfect production setup has been developed with transportation costs taken into consideration. The model analyzed lot sizing for manufacturers and retailers with imperfections in terms of equally sized shipments. Furthermore, an all-unit-discount policy for shipment is considered in the proposed research, and at the end, numerical computation and sensitivity analyses are carried out to gain more insight into the specifications of the model.

Keywords: economic production quantity; imperfection in production process; backorders; shipment policy; transportation cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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