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Analytical MS/OR Tools Applied to a Plant Closure

Author

Listed:
  • Dale W. Clements

    (Allied-Signal Aerospace Company, PO Box 419159, Kansas City, Missouri 64141-6159)

  • Richard A. Reid

    (Anderson Schools of Management, University of New Mexico, Albuquerque, New Mexico 87131)

Abstract

A decision was made in 1989 to shut down the microchip production plant that was being operated by Allied-Signal for the US 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.

Suggested Citation

  • Dale W. Clements & Richard A. Reid, 1994. "Analytical MS/OR Tools Applied to a Plant Closure," Interfaces, INFORMS, vol. 24(2), pages 1-12, April.
    • Handle: RePEc:inm:orinte:v:24:y:1994:i:2:p:1-12
    DOI: 10.1287/inte.24.2.1
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