| aggregate demand | The total demand for all products or services.
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| backlog | A queue of orders waiting to be processed.
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| best operating level | The level of demand or “load” on a system that results in the lowest cost per unit produced or processed.
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| bill of capacity | A statement of the time required on each resource needed to produce a product.
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| bottleneck | A constraint in a production system.
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| capacity requirements planning | A detailed capacity planning approach in manufacturing that uses the planned releases from MRP to provide the quantity of units that must be produced.
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| constraint | Anything that inhibits a system’s progress toward its goals.
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| constraint management | A framework for managing the constraints of a system in a way that maximizes the system’s accomplishment of its goals.
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| demand chase | An aggregate planning approach that uses hiring and firing of employees to increase and decrease output to match fluctuating demand.
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| design capacity | The capacity a facility is designed to accommodate on an ongoing basis.
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| level production | An aggregate planning approach that uses inventory stored from period to period to reduce the need to change the output rate as demand changes.
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| rough-cut capacity planning | A detailed capacity planning approach used in manufacturing that uses the master production schedule to provide the quantity of units that must be produced.
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| yield management | An approach used in capital-intensive services that attempts to obtain maximum revenues through differential pricing, reservation systems, and overbooking.
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