Chapter 12 Key Terms

1. Aggregate Planning (541): intermediate-range capacity planning, usually
covering 2 to 12months.

2. Level Capacity Strategy(548): maintaining a steady rate of regular-time
output while meeting variations in demand by a combination of options.

3. Chase Demand Strategy(548): Matching capacity to demand; the planned output
for a period is set at the expected demand for that period.

4. Linear Decision rule(557): optimizing technique that seeks to minimize
combined costs, using a set of cost-approximating functions to obtain two
linear equations.

5. Simulation Models (557): computerized models that can be tested under
different scenarios to identify acceptable solutions to problems.

6. Master Schedule (559): shows quantity and timing of specific end items for a
scheduled horizon.

7. Master Production Schedule (MPS) (561): this schedule indicates the quantity
and timing of planned completed production.

8. Rough-cut Capacity planning (561): approximate balancing of capacity and
demand to test the feasibility of a master schedule.

9. Available-to-Promise (ATP) Inventory (561): uncommitted inventory.

10. Time fences (564): points intimae that separate phases of a master schedule
planning horizon.