Intertemporal generalization of the relationship between material requirements planning and input-output analysis

Abstract

The relationship between different approaches for modelling production opportunities has previously been investigated regarding input—output analysis and Material Requirements Planning (MRP) concerning mainly one-period cases, not taking intertemporal considerations such as inventories, the time-phasing of orders, etc, into account. This paper focuses on MRP-related approaches and input—output analysis generalizing previous findings to multi-period cases in which inventories and the time-allocation of production activities due to lead times are essential ingredients. An important concept developed is the generalized input matrix which, apart from input requirements, also captures all lead times involved by means of z-transform operators. Also derived are two simple stationary economic order quantity formulas for the multi-product, multi-period case treated.