Abstract: This paper presents a model for an unreliable
production line, which is operated according to demand with constant
work-in-process (CONWIP). A simulation model is developed based
on the discrete model and several case problems are analyzed using
the model. The model is utilized to optimize storage space capacities
at intermediate stages and the number of kanbans at the last stage,
which is used to trigger the production at the first stage. Furthermore,
effects of several line parameters on production rate are analyzed
using design of experiments.