I. INTRODUCTION
The Economic Production Quantity (EPQ) model is a mathematical inventory model that considers finite production rate. EPQ model assumes production rate is higher than the item's demand rate, and machine has no breakdown. Abboud [1] developed an EPQ model with machine breakdown. In his model, he assumed machine can fail during production time. When the machine fails, it will be repaired immediately. The repair times are independent and identically distributed. Lin and Gong [2] extended the model by Abboud [1] to develop an EPQ deteriorating inventory model with machine breakdown. However, they assumed fixed machine repair time. This study considers the assumptions in [1] and [2] and develops an EPQ deteriorating item model with machine breakdown which has independent and identically distributed repair time.