In this paper, we establish an economic production quantity (EPQ) based inventory model by considering various types of non-perfect products . We classify products in four groups of perfect, imperfect, defective but reworkable and non-reworkable defective items. The demand is a power function of price and marketing expenditure and production unit cost is considered to be a function of lot size. The objective of this paper is to determine lot size, marketing expenditure, selling price, set up

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... t and inventory holding cost, simultaneously. The problem is modeled as a nonlinear posynomial geometric programming and an optimal solution is derived. The implementation of the proposed method is demonstrated using a numerical example and the sensitivity analysis is also performed to study the behavior of the model.