Optimal production schedule in declining market for an imperfect production system

This chapter deals with a mathematical model which gives an optimal production schedule in demand declining market if production system is imperfect (i.e. at any random time during production period machine shifts from 'in – control' state in to 'out – of control' state). This is a study about economic production in an imperfect production system. The imperfect production system means, a system in which the machine shifts from an 'in-control' state to an 'out-of-control' state. This may happen at any random time during the production period. The classical economic production lot size model is based on the assumption that the produced items are of perfect quality. However, this is not observed during the production phase. In the long run, the process shifts from the 'in-control' state to the 'out-of-control' state after certain time due to continuous usage of the machine. The proposed model is developed to study the optimal production