Equation (3) shows the efficiency improvement gained
from buffer b additional to the efficiency with no buffer
stock E0. The second term on the right hand side indicates
additional efficiency improvement. '
1 D is the proportion
of expected downtime of stage 1 to the total production
time and can be formulated in equation (4). The term h(b)
is the rate of improvement obtained from buffer b and can
be formulated as in equation (5) and (6).