Abstract: Extensive research has been devoted to economic
production quantity (EPQ) problem. However, no attention has been
paid to problems where production period length is constrained. In
this paper, we address the problem of deciding the optimal
production quantity and the number of minor setups within each
cycle, in which, production period length is constrained but a minor
setup is possible for pass the constraint. A mathematical model is
developed and Iterated Local Search (ILS) is proposed to solve this
problem. Finally, solution procedure illustrated with a numerical
example and results are analyzed.