Which planning level involves executive level actions such as facility construction and major equipment purchases?

Which planning level involves executive level actions such as facility construction and major equipment purchases?

• A. Intermediate Range
• B. Aggregate Production Plan (APP)
• C. Long Range
• D. Short Range

Answer: (C)

Long-range planning covers decisions that shape the company’s capacity and future capabilities. Executive-level actions like building a new facility, expanding plant capacity, or purchasing major machinery require large investments, long lead times, and careful capital budgeting. These moves set the production capability for years ahead, so they belong to the long-range horizon. In contrast, shorter horizons deal with near-term adjustments: aggregate production and inventory levels over months to a year (intermediate range) and day-to-day scheduling and shop-floor activities (short range).