MAS 2009 Proceeding

MRP-DRP model as a base for negotiations in times of recession

Authors:   Marija Bogataj, Robert W. Grubbström FVR RI and Ludvik Bogataj

Abstract

In times of recession unemployment is increasing because of reduced demand, which influences the optimal production level. The impact of the production level on the cash flow, annuity stream and net present value generated by activities in a supply chain may be analysed in detail by employing MRP Theory. In this paper we concentrate our attention on the question of (1) differences between planned production and realisation, which appear especially in the stochastic behavior of MRP-DRP systems, and (2) the oligopoly position of activity cells depending on the location and regional policies. Our extended MRP model enables us to derive consequences of these influences and interactions.

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