aggregation To combine the creation of many similar products into one relevant measure of activity for the organization. Click here for Hint heuristic or aggregate planning or aggregation ?

aggregate planning Medium-term tactical capacity planning in response to changing demand. Click here for Hint heuristic or aggregate planning or aggregation ?

average inventory The average of the beginning and the ending inventory of a particular time period. Click here for Hint average inventory or gross requirement or ending inventory?

backflushing Determining the overall inventory requirements of a finished good by combining information on amount of the good produced with the requirements information in its bill of materials. Click here for Hint backflushing or average inventory or MRP?

backward scheduling Starting an activity so it will finish on its deadline. Click here for Hint backward scheduling or optimization or time bucket?

beginning inventory The level of inventory as measured at the beginning of a particular time period. This level is assumed to be the ending inventory of the previous time period. Click here for Hint average inventory or beginning inventory or ERP?

bill of materials A description of all raw materials and intermediate assemblies required to create a finished product. Click here for Hint WIP or bill of materials or product structure diagram?

capacity cushion Largely idle capacity maintained beyond the expected load level of a system, often to absorb unexpected demand. Click here for Hint capacity cushion or WIP or stockpiling?

chase demand strategy Aggregate planning approach that relies on changing capacity to match demand. Click here for Hint MRP or ERP or chase demand strategy?

child An item required for immediate transformation into another item, known as its parent. Click here for Hint child or lead time or time bucket?

dependent demand Requirements for child items; also known as component demand. Click here for Hint parent or MRP or dependent demand?

disaggregation Translation of an aggregated value into smaller individual estimates corresponding to specific products. Click here for Hint bill of materials or disaggregation or dynamic?

dynamic Actively and continuously changing. Click here for Hint infinite loading or dynamic or planning horizon?

efficiency Percent of a resource in productive use. Click here for Hint backflushing or dynamic or efficiency?

ending inventory The level of inventory as measured at the conclusion of a particular time period. This level is assumed to be the beginning inventory of the next time period. Click here for Hint ending inventory or beginning inventory or time bucket?

enterprise resource planning (ERP) A strategic information system that integrates all functional areas of an organization. Click here for Hint ERP or MRP or MRPII?

finite loading A scheduling approach that recognizes capacity constraints. Click here for Hint finite loading or infinite loading or MRPII?

finished goods Inventory awaiting sale to consumers. Click here for Hint average inventory or ending inventory or finished goods?

freezing In planning, a policy that does not allow changes to the MPS within a protected interval. Click here for Hint freezing or MRP or time fence?

Gantt chart A scheduling diagram that illustrates activities across a horizontal timeline. Click here for Hint MPS or product structure diagram or Gantt chart?

gross requirements The combined, overall demand for an item. Click here for Hint gross requirements or LFL or dependent demand?

heuristic A procedure to develop a good solution to a problem, but cannot guarantee identification of the best solution. Click here for Hint dynamic or heuristic or optimization?

holding costs Variable costs associated with having inventory. Click here for Hint MCP rate or holding costs or aggregation?

independent demand Requirements for an item from outside the system, also known as customer demand. Click here for Hint raw materials or dependent demand or independent demand?

infinite loading A scheduling approach that ignores capacity constraints. Click here for Hint infinite loading or finite loading or MRP?

lead time Any delay between requesting a product and receiving it. Click here for Hint nervous or time bucket or lead time?

level demand strategy Aggregate planning approach that relies on influencing demand to match capacity. Click here for Hint level demand strategy or MRP or MRPII?

level production strategy Aggregate planning approach that relies on fixed capacity despite changing demand. Click here for Hint level demand strategy or MRP or level production strategy?

lot-for-lot (LFL) An ordering policy in which orders are sized to match individual demands exactly, theoretically accumulating no inventory. Click here for Hint MPS or LFL or MRP?

minimum constant production (MCP) rate The lowest speed of perfectly level production that will not produce any shortages within a demand forecast. Click here for Hint MCP rate or MPS or level production strategy?

manufacturing resource planning (MRPII) A broader information system embedding MRP logic in a set of modules that integrate input from other areas of the organizations and enforce relevant capacity constraints on the development of schedules. Click here for Hint MRP or MRPII or ERP?

master production schedule A statement of independent demand for all inventory items in an MRP system. Click here for Hint MPS or level demand strategy or MRPII?

material requirements planning (MRP) A technique for scheduling the production of multiple items related by both independent and dependent demand. Click here for Hint MRP or MRPII or ERP?

natural planning horizon A point of time within a forecast where aggregate demand dictates the minimum level production rate necessary to fulfill all demand specified by that forecast. Click here for Hint time fence or time bucket or natural planning horizon?

nervous In management science, a condition in which a small change to input data can create major revisions to the conclusions suggested by a particular technique. Click here for Hint nervous or LFL or disaggregation?

optimization Identification of the best alternative. Click here for Hint heuristic or ERP or optimization?

parent An item created from one or more other items, known as its children. Click here for Hint finished goods or parent or ending inventory?

planned order receipts A schedule of the arrival of a particular item within a planning horizon, to supply its gross requirements over that same time interval. Click here for Hint planned order receipts or aggregation or planned order releases?

planned order releases A schedule of the ordering of a particular item within a planning horizon, to supply its gross requirements over that same time interval. Click here for Hint planned order receipts or aggregation or planned order releases?

planning horizon The farthest point in the future considered in decision making. Click here for Hint planning horizon or time fence or time bucket?

product structure diagram A particularly visual format for a bill of materials, in which parent/ child relationships among inventory items are illustrated as a network of connected shapes. Click here for Hint bill of materials or Gantt chart or product structure diagram?

raw materials Inventory brought in from outside the system. Click here for Hint WIP or raw materials or beginning inventory?

stockpiling Producing or securing goods in advance of demand, building up substantial inventory. Click here for Hint optimization or level production strategy or stockpiling?

subcontract To engage a third party in the provision of value to a customer. Click here for Hint subcontract or parent or finite loading?

time bucket The smallest interval of time used in planning, such as hourly, daily, or weekly. Click here for Hint time bucket or time fence or planning horizon?

time fence A point in time specified by a policy to protect an MPS from near-term changes, dividing the planning horizon into shorter intervals with varying levels of protection. Click here for Hint time bucket or time fence or planning horizon?

utilization Percent of design capacity in use. Click here for Hint efficiency or utilization or dynamic?

work-in-process (WIP) Inventory resulting from transformation of raw materials but not yet ready for sale to consumers. Click here for Hint ending inventory or finished goods or WIP?