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

  • 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

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説明

<jats:p> 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. </jats:p>

収録刊行物

  • Interfaces

    Interfaces 27 (1), 128-142, 1997-02

    Institute for Operations Research and the Management Sciences (INFORMS)

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