Introduction
This chapter focuses on the notion of production and how economists characterize production relationships in the context of the literature, and then presents a brief historical overview of the evolution of economists’ approaches to addressing the concept of time in production decision making. The major directions of production decisions having the potential to drive a dynamic decision process are presented. Being able to measure efficiency allows one to engage in benchmarking a firm against its peers to assess relative performance and obtain an objective reading to the core questions of many decision makers and planners. Productivity and economics performance are topics of high interest and have generated many studies and considerable discussion in economic policy circles across nations. Yet, theoretical and empirical studies focusing on production efficiency typically have ignored the time interdependence of production decisions and the adjustment paths of the firm over time.