“…Unlike the conventional EMQ model (Taft, 1918) which finds the most economic manufacturing lot size with simple assumptions of perfect product quality and continuous issuing policy; in real world, nonconforming items are sometimes produced, due to diverse unexpected factors in fabrication process (Mak, 1985;Henig & Gerchak, 1990;Boone et al, 2000;Maddah et al, 2010;Chiu et al, 2015a,b;Kim et al, 2015;Koley et al, 2015;Koren & Palčič, 2015;Jindal & Solanki, 2016;Zhang et al, 2016;Dhaiban et al, 2017). Reworking and repairing the nonconforming items can help reduce total manufacturing costs (Yum & McDowell, 1987;Zargar, 1995;Inderfurth, 2006;Taleizadeh et al, 2010;Chiu et al, 2016a,b;Jawla & Singh, 2016;Khanna et al, 2017). Besides, when finished items are to be distributed to outside locations, the discontinuous multi-shipment policy is practically used rather than the continuous policy.…”