Measure the quality level for a supplier-demand system by a multicommodity stochastic-flow network

Abstract

From the point of view of quality management, it is important to meet the customer's demand. The probability that the system can satisfy the customer's demand is an important performance index, and can be used to measure the quality level of the system. In this paper, we use a multicommodity stochastic-flow network to describe the relationship between the supplier and the customer. Each node as well as each arc has several possible capacities and may fail. The network allows multiple types of commodities to be transmitted from the source to the sink. Given the demand for each commodity at the sink, evaluation of the probability that the system meets the demands is performed. Such a probability, named the system reliability, is a performance index of quality level. At first, a simple algorithm is proposed to generate all lower boundary points for the demand, and the system reliability can be calculated in terms of such points. The computational complexity of the proposed algorithm is polynomial time in number of arcs, nodes and minimal paths.