| 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. |
| Intermediate-Range Planning | Activity that usually covers a period from 3 to 18 months with 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. |
| Mixed Strategy | A plan that combines options available for meeting demand. |
| 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. |
| Sales and Operations Planning | A term that refers to the process that helps companies keep demand and supply in balance. The terminology is meant to capture the importance of cross-functional work. |
| 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. |
