An economic production quantity model with imperfect production processes and corrective maintenance under allowable shortages

This purpose of the research presented in this article is to examine an imperfect production system with shortages. The method to carry out the deterioration process was using the Markov chain is a discrete-time process. We also prove that the model has a unique optimal lot size. In search of the bounds for the optimal lot size by mean of the proposed algorithm. Computational results using created data instances are presented to illustrate the performance of our proposed model. It is shown that significant cost savings can be achieved by our model. Therefore, our proposed model shows better performance than previous production lot size models by incorporating the effects of system deterioration, corrective maintenance and considering allowable shortages on lot sizing policies. Furthermore, sensitivity analysis of optimal solution with respect to the effects of the model parameters is also carried out.