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In this paper, we consider the economic lot scheduling problem with controllable production rates and imperfect quality. The problem is to schedule the production of several different items in the same facility on a repetitive basis. The facility is such that only one item can be produced at a time and the demand rate for each item is constant over an infinite planning horizon. We focus on the case where quality is imperfect and yield rates decrease with increased production rates and lot sizes. We show that the resulting lot sizes under the proposed extension are smaller. Also, we show that the production rates for some products can be considerably different from the case of perfect quality.
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Moutaz Khouja (1999) studied this question.
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