Brown et al. [17] presented a successful implementation of an optimization model that coordinates decisions on production, transportation and distribution at Kellogg Company. Kellogg operates five plants in the United States and Canada, and it has seven core distribution centers. The model has been used for tactical and operational decisions since 1990. The operational version of the model determines everyday production and shipping quantities. The tactical version helps to establish budget and make capacity expansion and consolidation decisions. The operational model reduced production, inventory and distribution costs by approximately $4:5 million in 1995. The tactical model recently guided a consolidation of production capacity with a projected savings of $35 to $40 million per year.