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Supply Chain Glossary - F

Supply Chain Glossary - F

firm offer

A written offer to buy or sell goods that will be held open for a stipulated period.

A planned order that can be frozen in quantity and time. The computer is not allowed to change it automatically; this is the responsibility of the planner in charge of the item that is being planned. This technique can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders. In addition, firm planned orders are the normal method of stating the master production schedule. See: planning time fence.


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