This paper presents a method for analyzing the transfer lines with finite storage buffers. Each machine spends a random amount of time processing each material. This transfer line can be modeled by the tandem queueing system with finite buffers. The great dimensionality of the state space renders the analysis of such system a formidable task. We propose an efficient algorithm to obtain the marginal state probabilities based on the exact algorithm for the two-machine system. Other performance measures, such as the utilization, the blocking probability, the average sojourn time, and the average queue length, can be easily calculated.