Final answer:
To minimize costs and achieve the desired line efficiency, the special feature of economies of scale and principles of lean manufacturing should be considered for optimizing buffer space distribution in production.
Step-by-step explanation:
To minimize total in-process inventory space cost and achieve a line efficiency of E = .87, the student is hinting at a system with a special feature that can be optimized. This special feature is often related to the concept of economies of scale, whereas the quantity of output increases, the cost per unit decreases. This is similar to how large retailers like Costco and Walmart operate, achieving lower costs through larger volumes. However, optimizing both buffers in a production line also implies an understanding of the buffer effectiveness, including buffer capacity and buffer range.
In scenarios like these, the distribution of buffer space can often be optimized by applying principles from lean manufacturing, where the aim is to minimize waste without sacrificing productivity. Specifically, the optimal buffer space distribution could involve a balanced approach where both buffers are adjusted to maintain the desired line efficiency while also minimizing costs. This could also relate to the positioning of buffer spaces and potential adjustments in production rates between different stages of the manufacturing process.