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Glossary
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aggregate planning  Intermediate-range capacity planning, usually covering 2 to 12 months.
available-to-promise (ATP) inventory  Uncommitted inventory.
chase demand strategy  Matching capacity to demand; the planned output for a period is set at the expected demand for that period.
level capacity strategy  Maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options.
master production schedule (MPS)  This schedule indicates the quantity and timing of planned completed production.
rough-cut capacity planning (RCCP)  Approximate balancing of capacity and demand to test the feasibility of a master schedule.
sales and operations planning  Intermediate-range decisions to balance supply and demand, integrating financial and operations planning.
simulation models  Computerized models that can be tested under different scenarios to identify acceptable solutions to problems.
time fences  Points in time that separate phases of a master schedule planning horizon.
yield management  The application of pricing strategies to allocate capacity among various categories of demand.







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