The function of setting the limits or levels of manufacturing operations based on the market plan and resource availability is called:
A) production planning
B) production activity level
C) capacity planning
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

Production planning involves setting the goals and objectives of manufacturing operations, ensuring that the necessary resources are available, and determining the best way to allocate those resources to meet demand. This includes setting production levels based on the market plan and available resources, which is the function described in the question. Production activity level refers specifically to the actual amount of production being carried out, while capacity planning involves determining the resources needed to meet production goals. Therefore, while these concepts are related to production planning, they are not the same as the function described in the question.

The Function of Setting the Limits or Levels of Manufacturing