Review article

https://doi.org/10.31803/tg-20210502115657

Transient Aspects of MRP Theory - Abridged

Robert W. Grubbström orcid.org/0000-0002-2674-6607 ; Linköping Institute of Technology, Olaus Magnus Väg, SE-58183 Linköping, Sweden

Abstract

MRP theory concerns production-inventory systems, in which produced items are made up of sets of sub-items, either produced or purchased (imported into the system) and required to be available a lead-time before the product is completed. The hierarchical dependence of relations between items is captured by the use of input matrices from Input-Output Analysis, the necessary advanced timing by applying the methodology of Laplace transforms, and the production-economic consequences by the net present value (NPV). This theory has been developed for about 40 years, but little attention has been given to transient aspects, i.e. when there happens to be an initial available inventory of items usable in future production. In this paper, we attempt to highlight the theoretical consequences from having a positive initial available inventory.

Keywords

Laplace transform methodology; Input-Output Analysis; NPV; Production Economics; MRP Theory

Hrčak ID:

258441

URI

https://hrcak.srce.hr/258441

Publication date:

8.6.2021.

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