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Chase strategy
Level production strategy
Cycle counting strategy
Demand matching strategy
Market segments
Similarity of manufacturing process
The availability of materials
The availability of machinery
300 units
400 units
500 units
600 units
Demand is unpredictable
Many product options exist
Required delivery times are shorter than the time needed to make the product
Customers require special engineering
The capacity requirements plan
The forecast of individual end items
Production activity control
The material requirements plan
It facilitates forecasting
It works with families of products
It is an agreed-upon plan between production and marketing/sales
It cannot e used for order promising
To maximize utilization of equipment
To keep the sales department happy
To maintain the desired level of customer service
To minimize inventory investment
It is an agreed-upon plan between finance and manufacturing
If it is poorly done, we can expect past-due schedules and unreliable delivery promises
It is a plan for families of products that manufacturing expects to make over some period in the future
It provides input to the production plan
Free stock
Available-to-promise
Excess production
Waste
Changes far out in the planning horizon can be made with little or no cost to manufacturing
In the "frozen zone", capacity and materials can easily be committed to new orders
Changes in the near future on the planning horizon are less costly to make than changes far out
The master planner should be authorized to make changes in the frozen zone