Dynamic Production Function Approximations

Abstract

In this chapter, we describe several approximations to the true dynamic production function that yield representations amenable for computation. We begin with a description of processes with load-dependent lead times that arise in manufacturing systems. Next, we show how to approximate an ideal description by using just two “boundary” input-output points. An application of this two-point boundary approximation to project-oriented production systems, such as a naval shipyard, is provided. We briefly describe serial and parallel aggregation of detailed dynamic production functions, and show how to extend the steady-state activity analysis models to the dynamic setting.