Developing and implementing a production planning DSS for CTI using structured modeling

Abstract

We developed and implemented optimization-based decision support systems (OBDSSs) to support production planning at CTI (an appliance-manufacturing firm) using new methodologies and tools based on structured modeling. These tools can reduce the time and cost required to build such systems. We released different versions of these systems, which progressively incorporated new production processes and several other enhancements. Our development strategy included close interaction with CTI's decision makers, a well-structured training program and follow-up, and short response times for releasing new versions of the software. We estimate use of our system increased profits by 13 to 24 percent, depending on the model version applied, an increase of between $3 to $6 million per year.