Determination of optimum of production rate of Network failure-prone manufacturing systems with perishable items using discrete event simulation and Taguchi design of experiment

In today's competitive world, due to factors such as stochastic demand and failure of machines, managers have been attention more to the importance of production and inventory control. Network Failure Prone Manufacture Systems are such as production systems that include failure of machine. This paper considers multi-products network failure manufacturing system with perishable items. The production control policy is based on the hedging point policy that consists in producing and maintaining of products in order to respond to demand and to avoid shortages. Demand is constant and shortages (backlog and lost sale) have been allowed. The main goal of this paper is to determine of optimal production rates that minimizes average total costs 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.