The paper considers a production facility that might deteriorate suddenly at some point during the production run time; after\r\ndeterioration, nonconforming items are produced in a greater rate compared to the rate before deterioration. Moreover, the\r\nproduction facility may ultimately break down; consequently, the production lot is aborted before completion. If breakdown\r\nhappens, corrective action is started immediately; otherwise, the production lot is completed and preventive repair is implemented\r\nat the end of the production cycle to enhance system reliability. The mathematical model is formulated under general distributions\r\nof failure, corrective, and repair times, while the numerical examples are solved under exponential failure and uniform repair\r\ntimes. The formulated model successfully determines the optimal lot size in addition to the optimal process parameters (mean and\r\nstandard deviation) simultaneously.
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