The production plan defines which of the following targets?

The production plan defines which of the following targets?
A . Sales forecast
B . Quantities of each product to be produced
C . Level of output to be produced
D . Business plans for the company

View Answer

Answer: C

Explanation:

The production plan is a high-level plan that defines the level of output to be produced for each product family or group in a given time period. It is based on the sales forecast, the aggregate production capacity, and the desired inventory levels. The production plan does not specify the quantities of each individual product to be produced, as this is done in the master production schedule. The production plan also does not include the sales forecast or the business plans for the company, as these are inputs to the production plan, not outputs12

References:

Introduction to Materials Management, 8th ed., 2017, Chapman, Stephen N., J. R. Tony Arnold, Ann K. Gatewood, and Lloyd M. Clive, ISBN: 978-0134156323, Chapter 11: Production Planning System Manufacturing Planning and Control for Supply Chain Management, The CPIM Reference, 2nd ed., 2018, Jacobs, F. Robert, William L. Berry, D. Clay Whybark, and Thomas E. Vollmann, ISBN: 978-1260108385, Chapter 6: Production Planning Strategies