This paper addresses the optimization of assembly lines with important transportation delays and with constant demand. Machines are subject to time-dependent failures and times to failure and times to repair are random variable with general distribution. In the continuous flow model proposed in this paper, material flowing out a machine waits a period of time called delay for material transfer before arriving at its downstream buffer. A simulation-based optimization method is used for determining optimal buffer levels in order to minimize the long run average cost. The optimization algorithm is based on the Infinitesimal Perturbation Analysis (IPA) technique for estimation of gradients along the simulation.

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