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This study presents an EPQ inventory model which provides some imperfect quality products. Initially, due to the existence of all fresh sources, the system remains in good condition, i.e., in-control state. But, after a certain time of production, this system must produce some defective items with the perfect ones, i.e., the system goes into an out-of-control state. Here, the transition time from one state to another state has been considered as a random variable. Besides that, a generalized screening process has been proposed which is based on the work performance of a worker that also depends on time, this is the key contribution of this study. Also, we have considered a preservation investment cost in the manufacturing system to control the defective rate. A generalized stochastic demand function has been proposed. Finally, numerical implications, managerial implications, and conclusions are made for the justification of my proposed model.
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