The time-averaged L4L solution - a condition for long-run stability applying MRP theory
2012 (English)In: International Journal of Production Research, ISSN 0020-7543, E-ISSN 1366-588X, Vol. 50, no 21, 6099-6110 p.Article in journal (Refereed) Published
MRP theory provides a theoretical background for multi-level, multi-stage production-inventory systems (material requirements planning in a general sense) together with their economic evaluation, in particular applying the net present value principle. The theory combines the use of input-output analysis and Laplace transforms, the former for capturing product structures, and the latter for incorporating timing, including time lags, lead times, and output delays. In this paper, we consider any production policy, when given any external demand as a vector-valued function of time. It is shown that in order for available inventory to be kept at finite levels at any time, the lot-for-lot (L4L) solution must be valid for the time averages of production and deliveries, irrespective of the policy followed. This analysis is carried out using properties the Laurent expansions of the transforms involved.
Place, publisher, year, edition, pages
Taylor and Francis , 2012. Vol. 50, no 21, 6099-6110 p.
MRP theory, lot-for-lot, Laplace transform, input-output analysis, stability
National CategoryEngineering and Technology
IdentifiersURN: urn:nbn:se:liu:diva-86138DOI: 10.1080/00207543.2011.653457ISI: 000310597100005OAI: oai:DiVA.org:liu-86138DiVA: diva2:574935