Introducing capacity limitations into multi-level, multi-stage production-inventory systems applying the input-output/Laplace transform approach

Abstract

The Laplace transform and Input-Output Analysis have been used to formulate a theoretical basis for Material Requirements Planning (MRP). In this paper, as a first step to incorporating capacity limitations into this theory, we introduce alternative formulations of a model for capacity-constrained production-inventory systems in a deterministic environment applying the same approach. We focus our attention on the way in which the balance equations constraining the system need to be modified. A numerical example is given to explain the model.

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