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Medium-term production planning covers about two years. Which decisions does it concern?
AThe layout of facilities, resource sourcing, and labor issues
BWhich goods the firm should produce over the next five years
CThe sequence in which each machine is loaded each morning
DThe price at which the finished output will be sold
Answer & Solution
Correct answer: A. The layout of facilities, resource sourcing, and labor issues
1. Medium-term planning decisions cover a horizon of about two years.
2. They concern the layout of the factory or service facility.
3. They also cover where and how to obtain the resources needed for production, along with labor issues.
4. The choice of which goods to produce is a longer-horizon question, so option B belongs to long-term planning.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Gearing Up: Production Planning_
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