Exploiting Virtual Elasticity of Production Systems for Respecting OTD-Part 1: Post-Optimality Conditions for Ergodic Order Arrivals in Fixed Capacity Regimes

Respecting the on-time-delivery (OTD) for manufacturing orders is mandatory. This depends, however, on the probability distribution of incoming order rate. The case of non-equal distribution, such as aggregated arrivals, may compromise the observance of on-time supplies for some orders. The purpose of this paper is to evaluate the conditions of post-optimality for stochastic order rate governed production systems in order to observe OTD. Instead of a heuristic or a simulative exploration, a Cartesian-based approach is applied to developing the necessary and sufficient mathematical condition to solve the problem statement. The research result demonstrates that increasing speed of throughput reveals a latent capacity, which allows arrival orders above capacity limits to be backlog-buffered and rescheduled for OTD, exploiting the virtual manufacturing elasticity inherent to all production systems to increase OTD reliability of non JIT-based production systems.