A PROFIT EPQ MODEL FOR BUYER–VENDOR COLLABORATION WITH SCREENING, DISPOSAL AND TRANSPORTATION COSTS

A profit-based EPQ model is developed in this study, accounting for screening,
disposal, and transportation costs to better reflect practical buyer-vendor interactions. In the
proposed model, both the buyer and the vendor are jointly responsible for the production of goods. The buyer is tasked with screening the products and disposing of any defective items, while the vendor bears the transportation costs associated with delivering the products. The model further evaluates the total profit generated for both parties, providing a comprehensive view of cost-sharing and profit distribution. Finally, numerical examples are presented to illustrate the applicability and validate the effectiveness of the proposed model.