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Public investment and intergenerational distribution under alternative modes of financing


  • Heijdra, Ben J.
  • Horst, Albert van der
  • Meijdam, Lex

    (Groningen University)


The research into multi-product production/inventory control systems has mainly assumed one of the two strategies: Make-to-Order (MTO) or Make-to-Stock (MTS). In practice, however, many companies cater to an increasing variety of products with varying logistical demands (e.g. short due dates, specific products) and production characteristics (e.g. capacity usage, setup) to different market segments and so they are moving to more MTO-production. As a consequence they operate under a hybrid MTO-MTS strategy. Important issues arising out of such situations are, for example, which products should be manufactured to stock and which ones on order and, how to allocate capacity among various MTO-MTS products. This paper presents the state-of-the-art literature review of the combined MTO-MTS production situations. A variety of production management issues in the context of food processing companies, where combined MTO-MTS production is quite common, are discussed in details. The authors propose a comprehensive hierarchical planning framework that covers the important production management decisions to serve as a starting point for evaluation and further research on the planning system for MTO-MTS situations.

Suggested Citation

  • Heijdra, Ben J. & Horst, Albert van der & Meijdam, Lex, 2002. "Public investment and intergenerational distribution under alternative modes of financing," Research Report 02C51, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  • Handle: RePEc:gro:rugsom:02c51

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    2. repec:gam:jsusta:v:10:y:2018:i:11:p:3895-:d:178469 is not listed on IDEAS
    3. Ben J. Heijdra & Ward E. Romp, 2008. "A life-cycle overlapping-generations model of the small open economy," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 88-121, January.
    4. Bom, Pedro R.D. & Ligthart, Jenny E., 2014. "Public infrastructure investment, output dynamics, and balanced budget fiscal rules," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 334-354.
    5. Moulaye Bamba & Jean-Louis Combes & Alexandru Minea, 2019. "The effects of fiscal consolidations on the composition of government spending," Working Papers halshs-02043892, HAL.
    6. repec:dgr:rugsom:05c04 is not listed on IDEAS
    7. Jérôme Creel & Paola Monperrus-Veroni & Francesco Saraceno, 2009. "On The Long-Term Effects Of Fiscal Policy In The United Kingdom: The Case For A Golden Rule," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(5), pages 580-607, November.

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