This paper studies the parameter design and the performance optimization of a Kanban system without stockouts in a multi-stage,mixed-model assembly line.The model of a Kanban system based on production processes is established by examining the relationship among the set-up time,the amount of work in process(WIP),the capacity indicated by a Kanban,and the takt-time ratio.A novel method for optimizing performance on the premise of no stockouts is proposed.Empirical results show that the amount of WIP is reduced remarkably after optimization. This paper studies the parameter design and the performance optimization of a Kanban system without stockouts in a multi-stage, mixed-model assembly line. The model of a Kanban system based on production processes is established by examining the relationship among the set-up time , the amount of work in process (WIP), the capacity indicated by a Kanban, and the takt-time ratio. A novel method for optimizing performance on the premise of no stockouts is proposed. Empirical results show that the amount of WIP is reduced remarkably after optimization.