In a previous issue of this journal, Liberatore and Miller [1985] desc
ribed the efforts of a ceramic tile manufacturer, American Olean Tile
Company, to implement a hierarchical production and distribution plann
ing system. That original model-based planning system evolved and prog
ressed over the next four to five years to produce long-range benefits
for the firm. Among the enhancements American Olean introduced were t
he replacement of a static annual optimization model with several dyna
mic models, an improved inventory planning approach, and improved dema
nd forecast models.