<p>The imperfect production system, with leading shortages as a significant obstacle in developing a suitable model that aligns with real-world inventories. This study addresses this issue by presenting a mathematical model for a third-order equation that includes price-dependent demand, reworking, scrap, and an imperfect manufacturing inventory system. Shortages, pricing, and Production lot size are 3 decision variables. In literature, in a flawed manufacturing system, only two choice factors, shortages, as well as production lot size, are considered. Nevertheless, this model develops three decision variables: leading shortages, manufacturing lot size, and optimal price. Two models are developed: model one, with reworking, and model two, without revising. An analysis of comparison is conducted between the profits generated before reworking and those generated after reworking. The price break-even point identifies the price at which the product generates neither profit nor loss, helping to determine the price that maximizes profit. The breakeven price per unit of the product is calculated at 2722.863, and at this price no profit will be made. Out of this values, the price = 3712.32 is giving a maximum profit which is shown in the Table&#xa0;3. The more profit is derived with reworking of defective items that is 165,204. The objective here is to determine the optimal lot size, shortages, and pricing for an “imperfect production system” that maximizes overall profit. The highest possible profit is determined, and it satisfies the law of demand. A mathematical model is developed, along with a method to obtain the optimal solution. A numerical example is solved, and a sensitivity analysis is conducted to assess the impact of different factors. The data are generated using Visual Basic 6.0.</p>