This investigation integrates manufacturing and transportation systems. In order to control the system under study, the environmental
hedging point policy (EHPP) is utilized. Here the manufacturing systemconsists of unreliable production facilities. This is
a single-product manufacturing system considering constant demands for final products. The unreliability of the system is a
consequence of the downtimes of the transportation system. So, repairs are required. Failure and maintenance are stochastic
processes. The transportation system studied here includes the determination of a selective strategy for transporting a family of
products. This flow becomes from one warehouse to a distribution center based on the demand of the customers. As the proposed
model suffers from the complexity and difficulty, in this paper, the simulation-optimization method is exploited to tackle the
problem. The results of this research determine the economic level of production and optimal transportation strategy. After the
implementation of this policy, the manager can minimize the total cost.