Abstract:Classical Economic Production Quantity ( EPQ) model was not appropriate when produced products contained imperfect items. T o deal with this problem, new models were proposed. Two EPQ models with fuzzy defectrate, fuzzy reject rate, backorder and reworking cost were constructed based on different product screening rate. The optimal production policies were determined using a simple algebraic method and signed distance to solve the fuzzy models. The relationship between model 1 and model 2 was revealed through theoretical analysis. Numerical examples were provided to examine the impact of screening rate, fuzziness of defect rate and reject rate on the optimal production quantity and minimum total cost.