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Developing and Implementing a Production Planning DSS for CTI Using Structured Modeling

Author

Listed:
  • Pedro Gazmuri

    (Universidad de los Andes, San Carlos de Apoquindo 2200, Santiago, Chile)

  • Sergio Maturana

    (Pontificia Universidad Católica de Chile, Casilla 306, Santiago 22, Chile)

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.

Suggested Citation

  • Pedro Gazmuri & Sergio Maturana, 2001. "Developing and Implementing a Production Planning DSS for CTI Using Structured Modeling," Interfaces, INFORMS, vol. 31(4), pages 22-36, August.
    • Handle: RePEc:inm:orinte:v:31:y:2001:i:4:p:22-36
    DOI: 10.1287/inte.31.4.22.9668
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    References listed on IDEAS

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    1. Maturana, Sergio & Ferrer, Juan-Carlos & Baranao, Francisco, 2004. "Design and implementation of an optimization-based decision support system generator," European Journal of Operational Research, Elsevier, vol. 154(1), pages 170-183, April.
    2. Luis Contesse & Juan Ferrer & Sergio Maturana, 2005. "A Mixed-Integer Programming Model for Gas Purchase and Transportation," Annals of Operations Research, Springer, vol. 139(1), pages 39-63, October.

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