In recent years, due to severe environmental legislations and extended producer responsibility, leasing has been recommended as a strategy for increasing resources productivity and minimizing waste generation during consumption and product end-of-life (EOL) phase. Hence, it is essential to develop a model that can help leasing company for achieving sustainable production management. In this paper, a model is developed which optimizes the environmental and economical impact of product during leasing and its EOL phase from customers and leasing company point of view. To solve the problem, simulation-based optimization approach is investigated and the integrated mathematical and simulation model is developed for incorporating uncertainty during leasing period. Finally a case study with data from industry is used to validate the approach and potential applications of the developed model are illustrated.