A net present value approach to safety stocks in planned production

International Journal of Production Economics

Volumn 56-57, Issue , 1998, Pages 213-229

  Grubbström, Robert W ^a  

^a LINKÖPING INSTITUTE OF TECHNOLOGY   (Sweden)

Author keywords

Calculus of residues; Input output analysis; Laplace transform; MRP; Multi period production; Safety stock

Indexed keywords

DATA REDUCTION; DECISION THEORY; INVENTORY CONTROL; LAPLACE TRANSFORMS; MATHEMATICAL MODELS; PROCESS CONTROL; SCHEDULING; STRATEGIC PLANNING;

INPUT-OUTPUT ANALYSIS; MATERIALS REQUIREMENTS PLANNING; MULTI-PERIOD PRODUCTION; NET PRESENT VALUE (NPV) PRINCIPLE; SAFETY STOCKS;

JUST IN TIME PRODUCTION;

EID: 0032157764     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0925-5273(97)00094-7     Document Type: Article

References (25)

1. L.E. Andersson, R.W. Grubbström, 1994. Asymptotic behaviour of a stochastic multi-period inventory process with planned production. Working paper WP-210, Dept. of Production Economics, Linköping Institute of Technology.
2. J.A. Aseltine, 1958. Transform Method in Linear Sytem Analysis. McGraw-Hill, New York.
3. L. Bogataj, 1995. Lead times and other delays in inventory systems, in: L. Bogataj (Ed.), Inventory Modelling Lecture Notes of the International Postgraduate Summer School, Vol. 1, ISIR, Budapest, pp. 23-25.
4. L. Bogataj, L. Horvat, 1995. The application of game theory to MRP, input-output and multi-echelon inventory systems with exponentially distributed external demand. Proc. Internat. Symp. on Operations Research SOR'95, Portoroz, Slovenia, pp. 25-36.
5. L. Bogataj, L. Horvat, 1996. Stochastic considerations of Grubbstrom-Molinder model of MRP, input-output and multi-echelon inventory systems. Int. J. Prod. Econ. 45, 329-336.
6. R.V. Churchill, 1958. Operational Mathematics. McGraw-Hill, New York.
7. R.V. Churchill, 1960. Complex Variables and Applications. McGraw-Hill, New York.
8. R.W. Grubbström, 1967. On the application of the Laplace transform to certain economic problems. Mgmt. Sci. 13(7), 558-567.
9. R.W. Grubbström, 1980. A principle for determining the correct capital costs of work-in-progress and inventory. Int. J. Prod. Res. 18(2), 259-271.
10. k. Math. Scientist 16, 118-129.
11. R.W. Grubbström, 1996a. Material requirements planning and manufacturing resource planning, in: M. Warner (Ed.), International Encyclopedia of Business and Management, Routledge, London.
12. R.W. Grubbström, 1996b. Stochastic properties of a production inventory process with planned production using transform methodology. Int. J. Prod. Econ. 45, 407-419.
13. R.W. Grubbström, Y. Jiang, 1990. A survey and analysis of the application of the Laplace transform to present value problems. Revista mat. scienze economiche sociale 12(1), 43-62.
14. R.W. Grubbström, A. Molinder, 1994. Further theoretical considerations on the relationship between MRP, input-outpt analysis and multi-echelon inventory systems, In. J. Prod. Econ. 35, 299-311.
15. R.W. Grubbström, A. Molinder, 1996. Safety production plans in MRP-systems using transform methodology. Int. J. Prod. Econ. 46-47, 297-309.
16. R.W. Grubbström, P. Ovrin, 1992. Intertemporal generalization of the relationship between material requirements planning and input-output analysis. Int. J. Prod. Econ. 26, 311-318.
17. L. Horvat, L. Bogataj, 1996a. MRP, input-output analysis and multi-echelon inventory systems with exponentially distributed external demand. Proc. GLOCOSM Conf. Bangalore, India, pp. 149-154.
18. L. Horvat, L. Bogataj, 1996b. Game theory aspects of MRP, input-output and multi-echelon inventory systems. Preprints, vol. 3, 9th Int Working Seminar on Production Economics, Igls/Innsbruck, pp. 1-12.
19. L. Horvat, L. Bogataj, Multi-attribute decision making upgrading of Grubbström-Molinder model of the relationship between MRP and input-output analysis.
20. A. Molinder, 1995. Material Requirements Planning Employing Input-Output Analysis and Laplace Transforms, Production-Economic Research in Linköping, PROFIL 14, Linköping.
21. J.A. Orlicky, 1975. Material Requirements Planning. McGraw-Hill, New York, NY.
22. A. Thorstenson, 1988. Capital Costs in Inventory Models - A Discounted Cash Flow Approach. Production-Economic Research in Linköping, PROFIL 8, Linköping.
23. A. Thorstenson, R.W. Grubbström, 1993. Theoretical analysis of the difference between the traditional and the annuity stream principles applied to inventory evaluation. in: R. Flavell (Ed.), Modelling Reality and Personal Modelling, PhysicaVerlag, Heidelberg, pp. 296-326.
24. A. Vazsonyi, 1955. The use of Mathematics in production and Inventory control. Mgmt. Sci. 1, 70-85.
25. H.-P. Wiendahl, 1995. Load-Oriented Manufacturing Control. Springer, Berlin.