Implementing Integrated Production and Distribution Planning Systems

The development and implementation of an integrated production and distribution planning system requires more than the optimal solution of a set of mathematical models. Success is achieved when the organisation addresses both the technical and human issues in planning. The approach followed by a process manufacturer over the last five years to integrate fully its production and distribution planning and scheduling system is described. Reduced distribution costs and improved co‐ordination and communication are the principal benefits of this successful implementation. The major technical strategies adopted to co‐ordinate the tactical and short‐run planning and scheduling system are discussed, followed by the key organisational and human factors which play a vital role in the functioning of a successful system.