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A Hierarchical Production Planning System

Author

Listed:
  • Matthew J. Liberatore

    (College of Commerce and Finance, Villanova University, Villanova, Pennsylvania 19085)

  • Tan Miller

    (American Olean Tile Company, 1000 Cannon Avenue, Lansdale, Pennsylvania 19446-0271)

Abstract

Hierarchical integration of production planning, scheduling, and inventory control is required to coordinate organizational levels responsible for developing and executing plans. A hierarchical planning system has been developed for American Olean Tile Company and is being implemented. Since several system components were already in place, development costs to date include five months of an analyst's time and timesharing charges of about $10,000. Improved coordination and communication between manufacturing and marketing, the development of new sales forecasting procedures, and reduced distribution costs of $400,000--750,000 per year are the principal benefits.

Suggested Citation

  • Matthew J. Liberatore & Tan Miller, 1985. "A Hierarchical Production Planning System," Interfaces, INFORMS, vol. 15(4), pages 1-11, August.
    • Handle: RePEc:inm:orinte:v:15:y:1985:i:4:p:1-11
    DOI: 10.1287/inte.15.4.1
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    Citations

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    Cited by:

    1. Edmund W. Schuster & Stuart J. Allen, 1998. "Raw Material Management at Welch's, Inc," Interfaces, INFORMS, vol. 28(5), pages 13-24, October.
    2. Beraudy, Sébastien & Absi, Nabil & Dauzère-Pérès, Stéphane, 2022. "Timed route approaches for large multi-product multi-step capacitated production planning problems," European Journal of Operational Research, Elsevier, vol. 300(2), pages 602-614.
    3. Vicens, E. & Alemany, M. E. & Andres, C. & Guarch, J. J., 2001. "A design and application methodology for hierarchical production planning decision support systems in an enterprise integration context," International Journal of Production Economics, Elsevier, vol. 74(1-3), pages 5-20, December.
    4. Ozdamar, Linet & Birbil, Sevket Ilker, 1999. "A hierarchical planning system for energy intensive production environments," International Journal of Production Economics, Elsevier, vol. 58(2), pages 115-129, January.
    5. Vijay Gupta & Emmanuel Peters & Tan Miller & Kelvin Blyden, 2002. "Implementing a Distribution-Network Decision-Support System at Pfizer/Warner-Lambert," Interfaces, INFORMS, vol. 32(4), pages 28-45, August.
    6. Xue, Guisen & Felix Offodile, O. & Zhou, Hong & Troutt, Marvin D., 2011. "Integrated production planning with sequence-dependent family setup times," International Journal of Production Economics, Elsevier, vol. 131(2), pages 674-681, June.
    7. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Karina Copil & Martin Wörbelauer & Herbert Meyr & Horst Tempelmeier, 2017. "Simultaneous lotsizing and scheduling problems: a classification and review of models," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 1-64, January.
    9. Ozdamar, Linet & Bozyel, M. Ali & Birbil, S. Ilker, 1998. "A hierarchical decision support system for production planning (with case study)," European Journal of Operational Research, Elsevier, vol. 104(3), pages 403-422, February.
    10. Tan Miller & Emmanuel Peters & Vijay Gupta & Oduntan Bode, 2013. "A logistics deployment decision support system at Pfizer," Annals of Operations Research, Springer, vol. 203(1), pages 81-99, March.

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