Production Plan
A production plan must answer four basic questions:
- What are we going to make?
- What does it take to make it?
- What do we have?
- What do we need?
The answers to these four questions form the basis of a production plan. 1
A production plan prioritizes the production needs of the organization, and balances that with the capacity of the company to produce those products.
A production plan crosses many functions of a company, including forecasts, setting inventory levels, sourcing components, adjusting production capacity and staffing, and making necessary financing available.
1. Introduction to Materials Management Arnold and Chapman, 2001, p.17
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