Article ID: | iaor19942105 |
Country: | United States |
Volume: | 24 |
Issue: | 2 |
Start Page Number: | 1 |
End Page Number: | 12 |
Publication Date: | Mar 1994 |
Journal: | Interfaces |
Authors: | Reid Richard A., Clements Dale W. |
Keywords: | computers: calculation, production |
A decision was made in 1989 to shut down the microchip production plant that was being operated by Allied-Signal for the U.S. Department of Energy. Because of long-term contractual obligations, the manufacturing operations were to be gradually phased out over several years. Management used results from time-series forecasting and linear programming models to plan the plant closure and to schedule production during the phase-out period. These analytical tools provided information and insight that resulted in improved decision making and significant cost savings.