A hierarchical demand-driven production planning and control framework for the FMCG industry: An SAP-based approach

This paper presents a hierarchical demand-driven planning framework for the fast-moving consumer goods industry. We develop a planning methodology that is more adaptive to changing customer demand than the typical pull-based planning methods while it reduces inventories compared to the typical push-based planning methods. In an industry where forecast accuracy is often poor, our framework can help reduce inventory costs and avoid product returns and waste. We illustrate benefits of the developed framework in a real-world case study.