This study develops an EOQ model with time constraint, imperfect items and shortage backorders. In the traditional EOQ model, all items are assumed to be of perfect quality. However, in real life, not all items received in an inventory are of perfect quality. The imperfect-quality items are picked up during the 100% screening process and this would sometimes result in stockout. For a shortage period that is short within the time limit that the customers allow, some customers will be willing to wait for a new supply at no extra charge. If the delay time is too long, the seller will suffer a time-weighted penalty cost for backordering and a fraction of lost sell cost for lost customers. Therefore, a mathematical model is developed to derive the optimal order quantity and the backordering level such that the expected net profit per unit time is maximized.