The aim of the article is to present a model of material flow organisation in a changing production system operating under small batch production conditions. Material flow is an element of the value stream that transforms production inventory into a finished product, creating value for the purchaser. Material flow management aims to ensure the consistency of supply and reliability of the production processes being carried out. Carrying out simulations for various production scenarios will be the basis for developing an effective method of material flow management in small batch production of cutting tools. Material flow simulation makes it possible to uncover selectively disruptive factors in existing production systems in order to systematically improve systems. Implementing material flow simulation in a timely manner allows the right trajectory to be established before manufacturing reality knowledge is available.

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