That seems to be continous flow system. Therein is the "pulley block system" a dynamic buffer. At the end you will probably get only an animation, that counts item lengths of a simulation tick and build from the difference of speed from machine 1 to 2 the position of the pulley block and adjust the length of two thin boxes to represent the material from and to the pulley block. Maybe you animate the rolls such they rotate like the wheels of the transporter.
A more complex approach is to put conveyors on a visual plane. Then you rotate the plane that you look directly toward the rolls. The conveyor builds the path of the material. Your continous material consists of short items, which are traveling without a gap on the conveyor. The material width is the height of the items on the conveyor. And the shape of the conveyor is hidden. You see just the material.
At the end I would just build a black box and compute the position to identify the limits when the system get into a breakdown - the material is tearing apart or the pulley block gets to its top most position.
Or I put a queue between to conveyors as the black box with a capacity that is representing the top most position of the pulley block. If the queue gets empty the material tears apart. If the capacity reaches its highest level the conveyor of machine 1 gets into the state of being blocked.
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