A decision model to maximize the total profit of manufacturers in an imperfect production system is constructed.In this model the production reliability and the warranty length are jointly used as decision variables for the case that products are sold with a warranty i.e. the demand is dependent on the warranty length and sale price.Also all the non-conforming quality defective items in the production process are refurbished to conform to quality ones at a cost. The existence and uniqueness of the optimal values of production reliability and the warranty length are proved by using the Euler-Lagrange method in analyzing the model.A numerical example is also provided to illustrate the effectiveness of the decision model.The sensitivity analysis of the key parameters of the optimal solution and objective value is presented in addition.
