BLENDING OR MS, JUDGMENT, AND GIS - RESTRUCTURING P-AND-GS SUPPLY CHAIN/

In 1993, Procter & Gamble (P&G) began an effort entitled strengthening global effectiveness (SGE) to streamline work processes, drive out no nvalue-added costs, and eliminate duplication. A principal component o f SGE was the North American product supply study, designed to reexami ne and reengineer P&G's product-sourcing and distribution system for i ts North American operations. The methodology developed to solve this problem drew on OR/MS and information technology, merging integer prog ramming, network optimization models, and a geographical information s ystem (GIS). As a result of this study, P&G is reducing the number of North American plants by almost 20 percent, saving over $200 million i n pretax costs per year and renewing its focus on OR/MS approaches.