INFORMS Journal on Applied Analytics · 1985 · 78 citations · 5 references
EngineeringIndustrial EngineeringSmart ManufacturingProduction ManagementHierarchical IntegrationOperations ResearchInventory ControlManagementLogisticsSystems EngineeringSupply ChainQuantitative ManagementDesignManufacturing PlanningManufacturing SystemsSupply Chain ManagementOperations ManagementProduction ControlProduction PlanningProduction SchedulingBusinessHierarchical Planning System
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.
5