A Hierarchical Production Planning System

Matthew J. Liberatore and Tan Miller
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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

Interfaces, 1985, vol. 15, issue 4, 1-11

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.

Keywords: inventory/production: application; industries: ceramic (search for similar items in EconPapers)
Date: 1985
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