Open AccessVehicle selection model with respect to Economic Order Quantity
Author(s) -
Mariusz Wasiak
Publication year - 2016
Publication title -
archives of transport
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.309
H-Index - 14
eISSN - 2300-8830
pISSN - 0866-9546
DOI - 10.5604/08669546.1225471
Subject(s) - order (exchange) , economic order quantity , variable cost , selection (genetic algorithm) , operations research , variable (mathematics) , total cost , fixed cost , computer science , transport engineering , environmental economics , operations management , business , economics , microeconomics , engineering , mathematics , supply chain , marketing , mathematical analysis , artificial intelligence , finance
The matter of vehicle selection, optimizing the order quantity or optimizing logistics costs is extensively discussed in both Polish and foreign literature. In numerous publications, the necessity of decision making in transport or in other related areas with respect to total logistics costs is addressed. Nevertheless, problems arising from the effect of vehicle selection on Economic Order Quantity (EOQ), while fully taking into account transport costs, fails to be mentioned. This paper presents a decision-making model for transport selection taking into consideration total logistics costs and a newly obtained formula for the economic order quantity which separates transport costs into fixed costs, variable costs dependent on the driving distance and operation time, as well as other variable costs. Analyses pertaining to the impact of cargo value and volumetric weight on vehicle selection and on Economic Order Quantity are also conducted.