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aggregate planning  intermediate range capacity planning, usually covering 2 to 12 months.
aggregation  forming groups of similar commodities, represented by a single common unit of measurement, without identifying specific product names.
available-to-promise (ATP) inventory  uncommitted inventory.
chase demand strategy  matching capacity to demand; the planned output for the period is set equal to the expected demand for the period.
cumulative graph  a graph that displays accumulated output and sales over a period of time such as a year, showing where the periods of shortage and surplus occur.
disaggregation  breaking down an aggregate plan into specific products.
level capacity strategy  maintaining a steady rate of regular time output while meeting variations in demand by a combination of options.
linear decision rule  optimizing technique that seeks to minimize combined costs isomg a set of cost-approximating functions to obtain a single quadratic equation.
master production schedule  shows the quantity and timing of planned production.
master schedule  the result of disaggregating an aggregate plan; it shows the quantity and timing of specific end items for a scheduled horizon.
rough-cut capacity planning  approximate balancing of capacity and demand to test the feasibility of a master schedule.
simulation model  computerized models that can be tested under different scenariosto identify acceptable solutions to problems.
time fences  points in time that separate stages of a master schedule.







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