In other words, hierarchical planning takes you from the tip of the supply chain pyramid to its base.

The algorithm is recursive and uses artificial intelligence techniques such as first fail, hierarchical planning and hill-climbing to guide the inference engine's search for a solution.

Most companies do some hierarchical planning, at least implicitly, but lack a clear link between tactics, operations and strategy,” says Liberatore.

Hierarchical planning is, in fact, an essential tool for moving products faster and cheaper in a world with uncommon trade uncertainty.