EPQ model with depreciation cost and process quality cost as continuous functions of time

Extensive research has been devoted to economic production quantity (EPQ) problem. However, little attention has been paid to problems where depreciation cost and process quality cost must be considered, simultaneously. In this paper, we consider the economic production quantity model of minimizing the annual total cost subject to depreciation cost and process quality cost, where depreciation cost and process quality cost are assumed to be continuous functions of holding time and of production run length, respectively. Local search meta-heuristics: iterated local search (ILS) and simulated annealing (SA) are proposed to solve proposed model. Finally, the meta-heuristics are computationally compared by using some numerical examples and results are analyzed.