The study of optimal additional investments in capacities for reduction of delays in value chain

The study of optimal additional investments in capacities for reduction of delays in value chain

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Article ID: iaor20081765
Country: Netherlands
Volume: 108
Issue: 1/2
Start Page Number: 281
End Page Number: 290
Publication Date: Jan 2007
Journal: International Journal of Production Economics
Authors: ,
Keywords: production: MRP
Abstract:

In this paper, special attention is paid to the controllability and control of optimal investment actions model of supply chains, for studying the influence of additional investments in time-delay reductions which maximize the net present value (NPV) of value chain. The findings about NPV approach to safety stocks in planned production and especially in multi-level MRP system that has been considered by Grubbström, have been here of special interest for strategic analysis.

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