A production quantity model for imperfect quality items with shortage and screening constraint

This study develops an economic production quantity (EPQ) model and solution procedure for imperfect items with shortage and screening constraint. The Renewal Reward Theorem (RRT) is applied to formulate the exact expected total profit per unit time. We have shown the robustness of our model using time interval as decision variable rather than the traditional order size and backorder quantity. A solution procedure is provided to derive the optimal policy. Special cases of the EOQ/EPQ models can be obtained by taking the parameter limiting values. Numerical examples and sensitivity analysis are presented to verify our results.