Milad Farhangi - Young Researchers and Elite Club, Qazvin Branch, Islamic Azad University, Qazvin ,Iran
Iraj Mahdavi - Department of Industrial Engineering, Mazandaran University of Science & Technology, Babol, Iran
Bahzad Maleki Vishkaei - Department of Industrial Engineering, Mazandaran University of Science & Technology, Babol, Iran
Yousef Rahmati Nodehi - Department of Management, Rahbord Shomal University, Rasht, Iran

The aim of this paper is defining an optimal model for a retailer who uses a 100% screening process to reveal defective items which are received from the supplier. The demand rate is lower than the screening rate and the defective items will be sent to a repairing shop to be repaired. According to the fixing rate, the products will be sent back to the retailer after a while. During the fixing process the retailer may face shortages. The goal is finding the ordering amount to maximize the retailer s profit during the planning horizon. The mathematical model will be described and renewal-reward theorem will be used to solve the proposed model considering a numerical example.

Economic order quantity, screening process, repairing process, shortage