Article ID: | iaor19971329 |
Country: | Netherlands |
Volume: | 45 |
Issue: | 1/3 |
Start Page Number: | 329 |
End Page Number: | 336 |
Publication Date: | Aug 1996 |
Journal: | International Journal of Production Economics |
Authors: | Bogataj Ludvik, Horvat Liljana |
Keywords: | inventory |
In a recent paper Grubbström and Molinder studied theoretically the dynamic relationship between MRP, input-output analysis and multi-echelon inventory systems. In this paper the authors upgrade this approach including in the model the uncertainty of external demand and decison theory elements. In the model they suppose that the authors know only the upper and lower bounds of external demand rate and, because of lack of information, that the external demand is uniformly distributed. The complete decision model for the present case is considered and the advantages of this approach are demonstrated.