Which of the following represents the major reason for developing the production plan as part of
Sales and Operations Planning?
A) To decide how to best produce exactly what is in the sales plan
B) To plan for resources required to produce to the agreed plan
C) To plan a schedule for the production of individual products
D) To plan the acquisition of new manufacturing facilities

Question

Quizplus · Accepted Answer

Developing a production plan as part of Sales and Operations Planning is important to plan for the resources required to produce to the agreed plan. This includes determining the amount of materials, labor, equipment and other resources required to meet the production targets set in the sales plan. A production plan also helps to identify any potential capacity constraints or bottlenecks that could impact production, allowing organizations to plan and allocate resources accordingly. The other options (A, C, D) do not represent the primary reason for developing a production plan in the context of Sales and Operations Planning.

Which of the Following Represents the Major Reason for Developing