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An Efficient Buffer Design Algorithm for Production Line Profit Maximization

Abstract In this paper, we present an accurate and fast algorithm for maximizing profits through buffer size optimization for production lines. We consider both buffer space cost and average inventory cost with distinct cost coefficients for different buffers, and we include a nonlinear production rate constraint. To solve the problem, a corresponding unconstrained problem is introduced and a nonlinear programming approach is adopted. Numerical results are provided to show the efficiency and accuracy of our algorithm for both short and long lines.