The Challenges and Success Factors in Implementing an Integrated Products Planning System for Citgo

Darwin Klingman, Nancy Phillips, David Steiger, Ross Wirth and Warren Young
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Darwin Klingman: Graduate School of Business, The University of Texas at Austin, Austin, Texas 78712
Nancy Phillips: Graduate School of Business, The University of Texas at Austin, Austin, Texas 78712
David Steiger: Citgo Petroleum Corporation, One Warren Place, Box 3758, Tulsa, Oklahoma 74102
Ross Wirth: Citgo Petroleum Corporation, One Warren Place, Box 3758, Tulsa, Oklahoma 74102
Warren Young: Citgo Petroleum Corporation, One Warren Place, Box 3758, Tulsa, Oklahoma 74102

Interfaces, 1986, vol. 16, issue 3, 1-19

Abstract: Citgo Petroleum Corporation has recently realized a reduction in petroleum products inventory of $116 million (based on historical inventory-to-sales ratios), resulting in annual interest savings of $14 million, as well as improvements in coordination, pricing, and purchasing decisions estimated at $2.5 million annually. An optimization-based decision support system coupled with a state-of-the-art, on-line corporate data base provides management with the information which resulted in these benefits. These profit improvements are the documented benefits of an approach which combines management science and top management skills to achieve a comprehensive program for controlling working capital and planning operations.

Keywords: industries: petroleum/gas; networks/graphs: applications; inventory/production: applications (search for similar items in EconPapers)
Date: 1986
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