A system and method is disclosed for solving supply chain planning problems. The system includes a database that stores data representing a planning problem of a supply chain network and a computer that accesses the planning problem of the supply chain network stored in the database and models the planning problem as a network of nodes and edges. The computer further generates a hierarchical linear programming solution of the planning problem and applies advanced heuristics to the generated hierarchical linear programming solution. The computer still further formulates a mixed integer program to generate an optimized global hierarchical solution and stores the generated optimized global hierarchical solution in the database.