To improve the material consumption smoothing for mixed-model assembly lines, this paper proposes a new optimized approach based on Euclidean distance and an improved target tracking algorithm. With this new method, the average demands for materials for each product are calculated, and the distances between the actual usage and average demand are computed with the Euclidean distance formula, which is the consumption rate of materials. Then, the material consumption rates of each product are sorted in order, and the minimum value is listed as the optimal scheduling. Therefore, by moving in circles, the optimal scheduling of all products can be achieved. In addition, the production simulation model is established using the FlexSim software to decrease the processing bottleneck. Through running the simulation model, the cycle time is reduced, and the line balance is increased.