This study discusses production-inventory models for deteriorating items with imperfect production and inspection systems from the perspective of integration. The major purpose is to determine the manufacturer’s production and shipping policies and the two retailers’ replenishment policy such that the total profit of the entire supply chain is maximum. First, we establish the manufacturer’s and retailers’ total profit functions and do proper integration to obtain total profit function per unit time of supply chain system. Then mathematical analysis method is used to solve. Due to the complexity of model, this study develops an algorithm to obtain the optimal solutions. Furthermore, several numerical examples are presented to demonstrate the solution procedures, and sensitivity analyses of the major parameters will be also carried. Finally, some management implications are found to provide a useful reference for decision-makers from the results of numerical analysis.