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Journal of Intelligent Manufacturing

, Volume 23, Issue 6, pp 2069–2084 | Cite as

Probabilistic assessment of loss in revenue generation in demand-driven production

  • Omar K. HussainEmail author
  • Tharam Dillon
  • Farookh Khadeer Hussain
  • Elizabeth Chang
Article

Abstract

In Demand-driven Production with Just-in-Time inputs, there are several sources of uncertainty which impact on the manufacturer’s ability to meet the required customer’s demand within the given time frame. This can result in a loss of revenue and customers, which will have undesirable impacts on the financial aspects and on the viability of the manufacturer. Hence, a key concern for manufacturers in just-in-time production is to determine whether they can meet a specific level of demand within a given time frame, to meet the customers’ orders and also to achieve the required revenue target for that period of time. In this paper, we propose a methodology by which a manufacturer can ascertain the probability of not meeting the required demand within a given period by considering the uncertainties in the availability of production units and raw materials, and the loss of financial revenue that it would experience as a result.

Keywords

Just in time Production units Expected demand Outage levels Uncertainty 

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  • Omar K. Hussain
    • 1
    Email author
  • Tharam Dillon
    • 1
  • Farookh Khadeer Hussain
    • 1
  • Elizabeth Chang
    • 1
  1. 1.Digital Ecosystems and Business Intelligence InstituteCurtin University of TechnologyPerthAustralia

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