Abstract
This paper presents a mathematical model to determine transitional as well as steady state probabilities of various system states in a conveyor-paced assembly line system with the line-conveyor subject to failure and repair. The analysis helps to predict the effect of system parameters on labour efficiency, output rate, and system down time. The on-line service time distribution has been taken as general for wider applicability. An optimization problem for a business concern is then formulated taking into account all the relevant economic implications, and solved for a numercial example by STJMT. The profit function is seen to be a concave function with the cost structure as presented here. The results of the numerical example give convincing evidence that, when the problem is seen in totality, neither worker utilization nor output remain the criteria for optimization.