Extensive research has been devoted to economic production quantity (EPQ) problem. However, little atten-tion has been paid to problems where depreciation cost and process quality cost must be considered, simulta-neously. 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...

In recent years, car-sharing systems have been announced as a way to increase mobility and to decrease the number of single-occupant vehicles, congestion, and air pollution in many parts of the world. This study presents a linear programming model to optimize one-way car-sharing systems for electric cars considering the depreciation costs of chargers and vehicles as well as relocation cost of v...

A review of 116 travel cost models finds that, of the studies that report their practice, about half include depreciation in their calculation of vehicle costs and half do not, with none giving a justification for either approach. We examine empirically whether depreciation is related to households’ decisions of how much to drive. Using a sample of over 200,000 US households, we find that, rela...

Levy and Arditti (1973) introduced depreciable assets into the Modigliani and Miller (1958) model, and analyzed the implications for the cost of capital. Assuming that the firm reinvests indefinitely to maintain a constant expected cash flow, they found that depreciation increases the cost of capital before and after tax. Most of their assumptions are maintained. However, commitment to perpetua...

extensive research has been devoted to economic production quantity (epq) problem. however, little atten-tion has been paid to problems where depreciation cost and process quality cost must be considered, simulta-neously. 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...

Due to the depletion of the fossil fuels and major concerns about the security of energy in the future to produce fuels, the importance of utilizing the renewable energies is distinguished. Nowadays there has been a growing interest for biofuels. Thus, this paper reveals a general optimization model which enables the selection of preprocessing centers for the biomass, biofuel plants, and wareho...

A replacement model is presented for a productive asset subject to stochastic input decay, tax allowances due to a deterministic depreciation variable, and a fixed investment cost. The risk neutral valuation function is formulated and optimal trigger levels signalling replacement for the two factors is determined analytically although not as a closed-form solution. We demonstrate that the opera...