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CAPACITY LIMITATIONS, INVENTORY, AND TIME‐PHASED PRODUCTION IN THE SEQUENTIAL INTERINDUSTRY MODEL
Author(s) -
Romanoff Eliahu,
Levine Stephen H.
Publication year - 1986
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1986.tb00983.x
Subject(s) - production (economics) , economics , production model , computer science , operations research , microeconomics , engineering
A reformulation of the input‐output model by the introduction of the dynamics of interindustry production leads to the Sequential Interindustry Model, SIM. Focusing on current production, in this paper an enhanced formulation of SIM is presented by the introduction of time‐phased production and by an initial introduction of capacity and inventory. These enable some simple examinations of the relations between transient capacity limitations and inventory management and between the former and time‐phased production. The ensuing alternative repercussions on industry‐production paths are presented, and some implications for the modeling of national and regional economics are suggested.