Applying advanced planning systems for supply chain planning: Three case studies

Journal article, 2007

Purpose – The purpose of this paper is to explore how standardized advanced planning systems (APS) can be used for solving planning problems at tactical and strategic levels, and to identify the perceived effects of using APS. Design/methodology/approach – Multiple case studies involving three cases using APS software for strategic network planning and master production scheduling are conducted. Comparative analysis explores how the planning situation, the model design and use of the APS impact the perceived planning effects. Findings – Findings show how APS support cost-optimized strategic network design in one case and how efficiency, capacity utilization and delivery service problems were decreased in two cases using APS in global master planning processes. The cases show how APS supports cross-functional integration and supply chain commitment to a common plan. Research directions are suggested about the feasibility of APS in situations with various planning complexities, how design of the optimization model creates complexity and affects the planning process, data gathering requirements when using APS, the role and design of the planning organization, and how to achieve positive planning effects, such as finding global optimum and single plan commitment. Research limitations/implications – The approach is descriptive and explorative. Only three cases are studied. Practical implications – The findings present experiences of APS usage and identify issues to consider when using APS and potential benefits to gain from usage. Originality/value – The practical use of APS is low and the knowledge about how it impacts supply chain planning and performance is unexplored. The findings of this paper fill some of these gaps.