Customer demand satisfaction in production systems: a due-time performance approach

The problem of customer demand satisfaction in production systems with unreliable machines and finite finished goods buffers (FGB) is addressed. The measure of customer demand satisfaction is characterized by the probability to ship to the customer a required number of parts during a fixed time interval. This measure, referred to as the due-time performance (DTP), is often used to characterize the quality of a supplier in the automotive industry supply chain. In this paper, a method for evaluating DTP in serial and assembly lines is developed and the problem of selecting capacity of the FGB is discussed. The results obtained are illustrated by a case study at an automotive component plant.