One of the typical assumptions of the studies to determine economic production quantity is that yield rate of a given manufacturing process is 100% or constant after setup. However, in the real world, there are many manufacturing processes of which yield rates are quite low just after setup and then increasing with time until they reach the target rates which are set strategically. This period is usually called "stabilization period". During the stabilization period, defectives are produced, which incur cost (defective cost). In this study, an optimal production quantity for this situation is presented. Also, it is shown that defective cost acts like setup cost and therefore, increases the economic production quantity.