This paper models an unreliable automated manufacturing system CAMS) by a c
losed queuing network. The AMS consists of a multi-stage network of automat
ed work stations linked by a computer. A closed queuing algorithm is applie
d to determine the system availability under steady state for the AMS. This
algorithm is then integrated into a cost optimization model. By applying t
he revised genetic algorithm, the optimal (or near-optimal) number of stand
by units and repair rates for the repair stations are derived by minimizing
the total cost. The model is verified by the intuitive results from the se
nsitivity analysis. A numerical example is used to compare the revised gene
tic algorithm and the conventional genetic algorithm. The results show that
the proposed revised algorithm leads to significant improvement in executi
on time and lower average total cost.