A Hierarchical Production Planning System

1985; Institute for Operations Research and the Management Sciences; Volume: 15; Issue: 4 Linguagem: Inglês

10.1287/inte.15.4.1

ISSN

1526-551X

Autores

Matthew J. Liberatore, Tan Miller,

Tópico(s)

Advanced Statistical Process Monitoring

Resumo

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.

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