This study explains about a serial smart production system where a single-type of product is produced. This system uses an unequally sized batch policy in subsequent stages. The setup cost is not always deterministic, it can be controllable and reduced by increasing the capital investment cost, and that the production rates in the system may vary within given limits across batches of shipments. Furthermore, as imperfect items are produced in long-run system, to clean the imperfectness autonomation policy is adopted for inspection, which make the process smarter. The shipment lot sizes of the deliveries are unequal and variable. In long-run production system, defective items are produced in "out-of-control" state. In this model, the defect rate is random with a uniform distribution which is clean from the system by autonomation. In addition, in the remanufacturing process, it is assuming that all defective products are repaired, and no defective products are scrapped. The main theme of developing this model is to determine the number of shipments and the optimal production lot size to adjust the production rates and decrease the total system cost under a reduced setup cost by considering the discrete investment and make a serial smart production system. A solution procedure along with an advanced algorithm was proposed for solving the model. Numerical examples with some graphical representations are provided to validate the model.
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