Summary: This study investigates the buffer allocation strategy of a flow-shop-type production system that possesses a given total amount of buffers and finite buffer capacity for each workstation as well as general interarrival and service times in order to optimize such system performances as minimizing work-in-process, cycle time and blocking probability, maximizing throughput, or their combinations. In theory, the buffer allocation problem is in itself a difficult NP-hard combinatorial optimization problem, it is made even more difficult by the fact that the objective function is not obtainable in closed form for interrelating the integer decision variables (i.e., buffer sizes) and the performance measures of the system. Therefore, the purpose of this paper is to present an effective design methodology for buffer allocation in the production system. Our design methodology uses a dynamic programming process along with the embedded approximate analytic procedure for computing system performance measures under a certain allocation strategy. Numerical experiments show that our design methodology can quickly and quite precisely seek out the optimal or sub-optimal allocation strategy for most production system patterns.