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What does short-term production planning, within a one-year frame, actually do?
ADecides in which country the next factory will be built
BSelects the broad mix of goods for the next five years
CConverts broader goals into specific plans and strategies
DChooses the layout that the service facility will use
Answer & Solution
Correct answer: C. Converts broader goals into specific plans and strategies
1. Short-term planning works inside a one-year time frame.
2. Its job is to convert the broader goals set by longer-horizon planning into specific production plans.
3. It also produces the materials management strategies that support those plans.
4. Country choice and facility layout are settled at longer horizons, so they are already fixed by the time short-term planning begins.
_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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