Document Type : Original Article


1 Islamic Azad University, Najafabad, Iran.

2 University of Tehran, Tehran, Iran.


This paper, considers Network Failure Manufacturing System (NFPMS) and production control policy of unreliable multi-machines, multi-products with perishable items. The production control policy is based on the Hedging Point Policy (HPP). The important point in the simulation of this system is assumed that the customers who receive perishable item are placed in priority queue of the customers who are faced with shortage. The main goal of this paper is determining of optimal production rates that minimizes average total cost consist of shortage, production, holding and perishable costs. Because of uncertainly and complexity of this system, simulation optimization of this system using ARENA software has been done. A numerical example will show the efficiency of the proposed approach.


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