Article ID: | iaor19971332 |
Country: | Netherlands |
Volume: | 46/47 |
Start Page Number: | 297 |
End Page Number: | 309 |
Publication Date: | Dec 1996 |
Journal: | International Journal of Production Economics |
Authors: | Grubbstrm R.W., Molinder A. |
In recent papers relationshlips between input-output analysis, material requirements planning (MRP) and multi-echelon production-inventory systems have been studied. In this paper previous findings are generalised with external demand as a random variable. Immediate rescheduling because of random disturbances makes an MRP-system behave in a nervous way. Therefore correctly dimensioned safety stocks are important for use as a buffer when creating feasible master schedules. In this paper the authors develop a basic method illustrated with some examples of how such safety master production plans can be determined in simple cases in terms of our previously developed theory using the Laplace transform.