Sorting \& Buffering System (S/B system) is used to sort incoming products, hold them until lots of given sizes are formed, and then transport them to subsequent processes. This kind of system is widely used in automatic part feeding system, distribution center, and AS/RS. However, there exists very few researches into the impact on the system by such factors as the control logic, inputs and others. This thesis contains : (1) Analyzing the flow of products in the tire manufacturing company, (2) Identifying the generic function of S/B system, (3) Suggesting alternatives for each function, (4) Comparing the control logics and layout alternatives by simulation method. As a result of simulation, the priority among some control logics and layout alternatives is shown. Moreover, the general simulation procedure to determine the optimal size of S/B system is presented.