| 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 weekly, 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 workforce 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.
|