An assembly line system is a manufacturing process in which parts are added in sequence from workstation to workstation until the final assembly is produced. In a mixed-model assembly line balancing problem, tasks belonging to different product models, are allocated to workstations according to their processing times and precedence relationships amongst tasks. The research parlayed two features, learning effect and uncertain demand, into the conventional mixed-model assembly line balancing model, which is the main contribution of our paper. Both features can affect the new decision appeared in the stated problem — the level of production. The problem setup as well as the new decisions considered in the problem are novel. The proposed model optimized two objectives, total expected cost and average cycle time. To solve the model, a mixed integer-based heuristic and a customized variable neighborhood search method is proposed. The algorithms are examined for two different system response time requirements. Computational results showed that the mixed integer-based heuristic is more efficient if there is enough response time for the decision making process. On the contrary, the customized variable neighborhood search method can deliver promising results under real-time conditions. The Pareto-optimal set can be generated, which provides the managers with multiple choices for different cost and cycle time combinations.