Originally published in the series: Advanced Manufacturing Series
2002, XI, 262 p.
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Hierarchical and Supply Chain Planning describes the application of hierarchical planning techniques to all major functional areas of supply chain planning, including production, distribution, warehousing, transportation, inventory management, forecasting and performance management. In particular, the book provides a comprehensive review and understanding of how hierarchical planning techniques and principles can contribute to the effective and efficient management and planning of supply chain activities.
The book begins with a review of some well-known, original hierarchical production planning techniques and implementations dating back several decades. Building on this historical base, it then reviews numerous more current hierarchical planning methods and applications covering a wide array of supply chain activities. Additionally the book offers a number of new and original hierarchical planning techniques and algorithms covering different components of supply chain planning. These algorithms range from simple algebraic calculations to mathematical optimization models. The book also offers an original approach for integrating supply chain measurements into measurement systems such as the balanced scorecard which evaluate total firm performance.
The book is written to cover the interests of a wide variety of audiences ranging from private industry practitioners, to academic researchers, to students of operations, logistics and supply chain management and planning. It features numerous graphical illustrations highlighting both methods and requirements for integrated hierarchical supply chain planning.
…does an excellent job of pulling together much of the literature that relates to hierarchical planning, and presents some new methods and algorithms as well. This book is clearly written and makes good use of tables and diagrams to illustrate the hierarchical nature of the problems studied.
I recommend this book for a variety of audiences: researchers interested in obtaining a good understanding of the current state of hierarchical modelling applications, especially optimization, in supply chain management; practitioners interested in implementing specific supply chain modeling applications; and professors interested in having a supplemented, modeling-oriented text for their advanced classes in supply chain, logistics, or operations management.
1. Introduction.- 1.1 Introduction To Hierarchical Production Planning Systems.- 1.1.1 Strategic Planning.- 1.1.2 Tactical Planning.- 1.1.3 Operational Planning.- 1.2 Rationale And Implications For Hierarchical Production Planning Systems.- 1.2.1 Rationale And Initial Implications.- 1.2.2 Implications For Design Of Hierarchical Production Planning Systems.- 1.3 A Generic Framework For Hierarchical Production Planning.- 1.4 Objectives Of The Book.- 1.5 Organization Of The Book.- 2. Managing Operations On A Network: Integrated Manufacturing And Distribution Planning.- 2.1. Introduction.- 2.2. Case Study: An HPP Implemented By A Tire Manufacturer.- 2.2.1 Case Problem, Objective And Additional Background.- 2.2.2 Overview Of Hierarchical Planning System.- 2.2.3 Product Structure Hierarchy.- 2.2.4 Hierarchical Planning And Scheduling System.- 2.2.5 Summary.- 2.3 Case Study: An HPP Implemented By A Chemical Fertilizer Manufacturer.- 2.3.1 Case Problem, Objective And Additional Background.- 2.3.2 Overview Of Hierarchical Planning System.- 2.3.3 Summary.- 2.4. Case Study: An HPP Implemented By A Ceramic Tile Manufacturer.- 2.4.1 Case Problem, Objective And Additional Background.- 2.4.2 American Olean’s Hierarchical Planning System.- 2.4.3 Summary.- 2.5. Communications In A Hierarchical Production Planning Environment.- 2.6. Summary.- 3. Production Planning And Scheduling.- 3.1. Overview Of Hierarchical Production Planning For Plants 56.- 3.2. Linking Tactical Network Planning Methods And Single Plant Production Plans.- 3.3. Operational And Short Run Plant Scheduling Methods.- Appendix 3.3.2 The Equivalence Between Idle Periods And Reduced Production Rates.- 3.3.3. Illustrative End Item To Product Family Feedback Loop.- Appendix 3.3.3 Other End Item To Family, And Sub-Item To Item Considerations.- 3.4 Integrated Multi-Echelon Plant Scheduling.- 3.5 Material Requirements Planning.- 3.5.1 The Role Of MRP In A Production Planning Hierarchy.- 3.5.2 The Hierarchical Methodology Of MRP.- 3.6 Summary.- 4. Distribution And Transportation Planning And Scheduling.- 4.1 Strategic And Tactical Distribution And Transportation Planning.- 4.1.1 The Warehouse Location Model.- 4.1.2 A Multi-Echelon, Multi-Transport Mode Distribution Problem 99.- 4.1.3 Strategic Rail-Based Distribution And Transportation Planning. 112.- 4.1.4 Selected Other Strategic Distribution And Transportation Problems.- 4.2 Short Run Transportation Scheduling.- 4.3 Tactical And Annual Mode Choice Planning.- 4.3.1 Case Study Of A Tactical Transport Mode Choice Decision.- 4.3.2 Developing Product Families For Mode Choice.- 4.4 Lane Bundling For Tactical Carrier Choice Planning.- 4.4.1 Case Review: A Transportation Bidding Software System.- 4.4.2 Operational Feedback In The Carrier Selection Process.- 4.5. Summary.- 5. Warehouse Design and Management.- 5.1. The Warehouse Planning Process.- 5.2. Integrating Warehouse Planning With Production And Distribution Planning Activities.- 5.3. A Hierarchical Warehouse Facility Design And Operations Planning Example.- 5.4 Summary.- 6. Inventory Management And Forecasting.- 6.1. How Inventory Decisions Fit Into A Planning Hierarchy.- 6.2 A Hierarchical View Of A Firm’s Inventory.- 6.3 Aggregating End Items For Family Based Planning.- Appendix 6.3 A Multi-Echelon End Item Inventory Evaluation Algorithm.- 6.4 Hierarchical Approaches For Developing Tactical And Operational Planning Forecasts.- 6.5 Sales And Operations Planning (S&OP).- 6.6 Summary.- 7. Supply Chain And Firm-Wide Performance Measures.- 7.1. A Hierarchical Supply Chain Performance Measurement System.- 7.2. Logistics And Supply Chain Performance Measures 220.- 7.3. The Balanced Scorecard: A Firm-Wide Performance Measurement System.- 7.4. Integrating The Balanced Scorecard And Supply Chain Performance Measurement.- Appendix 7.4A Constructing An Index To Monitor Overall Firm Performance.- Appendix 7.4B Additional Issues To Consider In Constructing An Index.- 7.5 Summary.- 8. Conclusion.- References.