A Note on the Growth of a Production Planning System: A Case Study in Evolution

In a previous issue of this journal, Liberatore and Miller [1985] described the efforts of a ceramic tile manufacturer, American Olean Tile Company, to implement a hierarchical production and distribution planning system. That original model-based planning system evolved and progressed over the next four to five years to produce long-range benefits for the firm. Among the enhancements American Olean introduced were the replacement of a static annual optimization model with several dynamic models, an improved inventory planning approach, and improved demand forecast models.