In this study, the Arbitrary Lagrangian-Eulerian (ALE) method was used to investigate the osteonecrosis in orthopedic surgery of cortical bone. As a result of mesh motion control in the ALE method, element distortions were prevented and more accurate results predicted. To consider the temperature and reaction force variation in the orthogonal cutting of bovine cortical femur bone, the coupled thermo-mechanical simulations were used. Effects of cutting depth, cutting speed, and rake angle that may cause osteonecrosis on the reaction forces and the bone temperature variations were studied. The Johnson-Cook material model was employed to observe the strain rate effects on the cutting force and temperature distribution. The results of ALE simulations represented less than 10% error in comparison with the experimental data which could be used as the alternative method for experimental predictions. Furthermore, the response surface of design of experiments (DOE) method was used for performing a multi-objective optimization. Based on the obtained results, decreasing the rake angle less than 5° is the most significant term in the reduction of osteonecrosis.