An EPQ Model with Unit Production Cost and Set-Up Cost as Functions of Production Rate

Algorithm 1

Initialize the control parameters (𝐷, 𝑖, 𝜓, 𝜀, 𝐴₀, 𝐶₀, 𝑃_max, 𝜆)

set initial solution (𝑃₀=𝐷+𝜆),

compute 𝑄₀ with relation (7) and ATC(𝑃₀, 𝑄₀) with relation (3);

set (𝑃, 𝑄) = (𝑃^∗, 𝑄^∗) = (𝑃₀, 𝑄₀);

set  ATC(𝑃, 𝑄) = ATC(𝑃^∗, 𝑄^∗) = ATC(𝑃₀, 𝑄₀);

while 𝑃+𝜆≤𝑃_max  do

 set  𝑃=𝑃+𝜆, compute Q with relation (7) and ATC(𝑃, Q) with relation (3);

 if ATC(𝑃,𝑄)≤ATC(𝑃^∗,𝑄^∗)

  set (𝑃^∗,𝑄^∗)=(𝑃,𝑄);

 end

end

print (𝑃^∗,𝑄^∗);