Production and Operations Management Consulting.
Material requirements planning: System of linear equations
The MRP demand explosion problem is solved via the solution of a set of linear equations. The gozinto (bill-of-material) structure can be defined with the graph editor.
|i,j||index of products|
|a(i,j)||number of units of product i required to produce one unit of the immediate successor product j (value of arc form node i to node j in the gozinto structure)|
|d(i)||external demand for product i|
|(E-A)^-1||inverse of the technology matrix; an element (i,j) denotes the total number of units of product i required to produce one unit of product j|
|r(i)||total requirement of product i|