| Aggregate Operations Plan | Translating annual and quarterly business plans into labor and production output plans for the intermediate term. The objective is to minimize the cost of resources required to meet demand.
|
 |
|
|
| Capacity Requirements Planning | Allocation of production resource capacity to specific orders.
|
|
|
|
| Intermediate-Range | Activity that usually covers a period from 6 to 18 months with
|
|
|
|
| Planning | monthly or quarterly time increments.
|
|
|
|
| Inventory on Hand | Unused inventory carried from a previous period.
|
|
|
|
| Long-Range Planning | Activity typically done annually and focusing on a horizon of a year or more.
|
|
|
|
| Master Production Schedule (MPS) | A schedule of the amounts and times when specific items will be manufactured, typically using weekly increments of time.
|
|
|
|
| Material Requirements Planning (MRP) | Given the master production schedule, a procedure that generates specific schedules for component parts and subassemblies.
|
|
|
|
| Mixed Strategy | A plan that combines options available for meeting demand.
|
|
|
|
| Order Scheduling | Final planning of the use of specific machines, production lines, or work centers to produce orders.
|
|
|
|
| Production Planning Strategies | Plans that involve trade-offs among work-force size, work hours, inventory, and backlogs.
|
|
|
|
| Production Rate | The number of units completed per unit of time.
|
|
|
|
| Pure Strategy | A plan that uses just one of the options available for meeting demand. Typical options include chasing demand, using a stable workforce with overtime or part-time work, and constant production with shortages and overages absorbed by inventory.
|
|
|
|
| Rough-Cut Capacity Planning | Verification that sufficient capacity exists to meet a master production schedule.
|
|
|
|
| Short-Range Planning | Planning that covers a period less than six months with either daily or weekly increments of time.
|
|
|
|
| Workforce Level | The number of production workers needed each period.
|
|
|
|
| Yield Management | Allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield.
|