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The purpose of this study is to determine inventory policies for imperfect quality production systems. Empirical observations indicate that the process may deteriorate and produce defective or poor quality items. The models are assumed to produce a certain number of defective items during the production process. The article hypothesizes imperfect production systems where the items produced are a mixture of perfect and imperfect quality. The mathematical expression for the expected profit functions are derived and solution procedures are proposed to determine optimal policies. Finally, numerical examples are provided to illustrate the solution procedures. The results of this research can provide inventory managers with valuable suggestions in making the production policy.
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