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Hierarchical production planning (HPP) represents an approach and a philosophy towards the organization, planning and scheduling of production activities which has existed both in theory and practice for several decades. Originally developed as a planning and scheduling approach primarily for production activities, the philosophy of hierarchical production planning has evolved to encompass a broad range of supply chain management activities. Today, one can observe what can broadly be viewed as extensions of the HPP philosophy across activities ranging from production planning and integrated distribution and production planning to supply chain wide inventory management, transportation and warehouse planning and scheduling, sales and marketing planning and so on. In many of these activity areas, understandably no mention or acknowledgment of the hierarchical production planning approach exists. Nevertheless, upon closer inspection, clear similarities in techniques and philosophy exist among the myriad decision-making approaches used today to manage the diverse aspects of the supply chain and those techniques and approaches which embody hierarchical production planning. The common theme of a hierarchical approach towards the management of decision-making activities across the supply chain suggests that there exist benefits and broad learnings to be gained from exploring the hierarchical approaches and techniques utilized today in managing different components of the supply chain. Similarly, there exist numerous potential benefits and methodological improvements to be attained by applying hierarchical techniques used in certain elements of supply chain planning (e.g., production planning and scheduling) to other supply chain activities. The review of current hierarchical planning approaches and techniques and the exploration of how to more broadly apply these approaches and techniques to supply chain management represents a principal focus of this book.
KeywordsSupply Chain Management Planning Decision Tactical Planning Tactical Level Supply Chain Planning
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