As to the master planning procedure, the most
marked difference between order over planning and
hedging-option over planning concerns the control
of the buffer created to handle demand uncertainty.
In fact, while the latter techniques explicitly know
the over planning margins, order over planning implicitly
incorporates information about the slack
into the demand forecasts Qi~ This slack needs to
be managed, to avoid both an unrestrained growth
of inventories and an uncontrolled consumption of
capacity. To this purpose, Telcom acts in two directions:
aggregate control and detailed control (see
Fig. 4).