For the purpose of the reduction of tile cost, a production/inventory model including the interference phenomenon was developed. By investigating the cause and the characteristics of the direct/indirect cost due to the interference phenomenon, a strategy for suitable production was developed. The developed model was quantitatively validated using an existing-EPQ model and the SIMAN package was used to simulate and animate the model. Consequently, it was presented that the total operating cost of the system could be decreased with tile proposed model.