Production of defective products is a very general phenomenon. But backorder and short-
ages occur due to this defective product, and it hampers the manufacturer’s reputation along with
customer satisfaction. That is why, these outsourced products supply, a portion of required products
for in-line production. This study develops a flexible production model that reworks repairable defec-
tive products and outsources products to prevent backlogging. A percentage of total in-line production
is defective products, which is random, and those defective products are repairable. A green invest-
ment helps the reworking process, which has a direct impact on the market demand for products. A
classical optimization solves the profit maximization model, and a numerical method proves the global
optimal solutions. Sensitivity analysis, managerial insights, and discussions provide the highlights and
decision-making strategies for the applicability of this model.