MRP Theory combines the use of Input–Output Analysis and Laplace transforms, enabling the development of a theoretical background for multi-level, multi-stage production–inventory systems together with their economic evaluation, in particular applying the Net Present Value principle (NPV).

MRP Theory has been developed during the last 25 years for capturing processes concerning multi-level, multi-stage production-inventory systems in a compact way. Input–output analysis has been used to describe structures, and Laplace transforms to describe the timing relations. This theory has...