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In this book, we have reviewed applications of, and techniques for hierarchical planning across many different components of logistics and supply chain planning. Beginning with a discussion of strategic, tactical and operational planning in the context of a generic hierarchical production planning system in Chapter 1, we then moved on in Chapter 2 to consider a classical example of an HPP system designed by Hax and Meal (1975) for a US tire manufacturer. Our review of HPP implementations in this chapter also included a system installed by a chemical fertilizer manufacturer and a ceramic tile company. Although each HPP implementation was unique, they all shared a number of common characteristics. In particular, each system provided the respective manufacturer with the capability to develop network-wide integrated production and distribution plans spanning the operational, tactical and strategic planning horizons. Further, in each case, the HPP implementations spawned significant improvements in the coordination of the firms’ production and distribution activities, and each implementation led to significant reductions in annual operating costs. Each HPP implementation also stimulated an ongoing process of improvement at the respective firms. Specifically, we observed that the benefits of the initial system installations highlighted the potential to reap additional gains at each firm through both enhancements to existing components of the original planning systems and through the development of new components to enhance the original systems.
KeywordsSupply Chain Product Family Planning Level Strategic Level Supply Chain Planning
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