Developing a Comprehensive Shipment Policy through Modified EPQ Model Considering Process Imperfections, Transportation Cost, and Backorders

Waseem Sajjad, Misbah Ullah, Razaullah Khan and Mubashir Hayat
Additional contact information
Waseem Sajjad: Department of Industrial Engineering, University of Engineering and Technology, Peshawar 25120, Pakistan
Misbah Ullah: Department of Industrial Engineering, University of Engineering and Technology, Peshawar 25120, Pakistan
Razaullah Khan: Department of Engineering Management, University of Engineering and Applied Sciences, Swat 19060, Pakistan
Mubashir Hayat: Department of Mechanical Engineering, Campus Jalozai, University of Engineering and Technology, Peshawar 24240, Pakistan

Logistics, 2022, vol. 6, issue 3, 1-20

Abstract: Background: Determining the optimum shipment quantity in a traditional production system is a competitive business dimension, and developing a reliable shipment policy is decisive for long-term objectives. Currently, significant research in this domain has mainly focused on the optimum shipment lot sizing in a perfect production system without considering the imperfections in the production processes and logistics. It has been well established that the real production inventory system acts as an imperfection in the overall production management loop. Methods: This research deals with designing a new shipment policy considering the imperfections in the production processes and undertaking some influential factors, such as the transportation cost, the actual production inventory, defective items, and backorders. Results: In the developed mathematical framework, the lot-sizing problems, imperfections in the production processes, retailers, and distributors are considered with equal-sized shipment policy to attain pragmatic and real-time results. Conclusions : The developed framework considers an all-unit-discount transportation cost structure. The numerical computations, as well as sensitivity analysis, are performed to point out the specifications and validation of the proposed model.

Keywords: economic production quantity; imperfection in the process; production management; backorders; transportations costs; supply chain management (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2305-6290/6/3/41/pdf (application/pdf)
https://www.mdpi.com/2305-6290/6/3/41/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jlogis:v:6:y:2022:i:3:p:41-:d:846582

Access Statistics for this article

Logistics is currently edited by Ms. Mavis Li

More articles in Logistics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().