Blending OR/MS, Judgment, and GIS: Restructuring P&G's Supply Chain

Jeffrey D. Camm, Thomas E. Chorman, Franz A. Dill, James R. Evans, Dennis J. Sweeney and Glenn W. Wegryn
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Jeffrey D. Camm: Department of Quantitative Analysis and Operations Management, University of Cincinnati, Cincinnati, Ohio 45221-0130
Thomas E. Chorman: The Procter & Gamble Company, Cincinnati, Ohio 45224
Franz A. Dill: The Procter & Gamble Company, Cincinnati, Ohio 45224
James R. Evans: Department of Quantitative Analysis and Operations Management, University of Cincinnati, Cincinnati, Ohio 45221-0130
Dennis J. Sweeney: Department of Quantitative Analysis and Operations Management, University of Cincinnati, Cincinnati, Ohio 45221-0130
Glenn W. Wegryn: The Procter & Gamble Company, 2 Procter & Gamble Plaza, PNC-12, Cincinnati, Ohio 45201-5559

Interfaces, 1997, vol. 27, issue 1, 128-142

Abstract: In 1993, Procter & Gamble (P&G) began an effort entitled strengthening global effectiveness (SGE) to streamline work processes, drive out nonvalue-added costs, and eliminate duplication. A principal component of SGE was the North American product supply study, designed to reexamine and reengineer P&G's product-sourcing and distribution system for its North American operations. The methodology developed to solve this problem drew on OR/MS and information technology, merging integer programming, network optimization models, and a geographical information system (GIS). As a result of this study, P&G is reducing the number of North American plants by almost 20 percent, saving over $200 million in pretax costs per year and renewing its focus on OR/MS approaches.

Keywords: industries; pharmaceutical; decision analysis; applications (search for similar items in EconPapers)
Date: 1997
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