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Production planning involves determining the most efficient and effective way to manufacture goods or deliver services. It encompasses several key activities: Forecasting: Predicting future demand for products or services based on historical data, market trends, and other relevant factors. Accurate forecasting is essential for ensuring that production levels meet customer demand without excessive inventory buildup or stockouts. Capacity Planning: Assessing the organization's ability to meet forecasted demand by evaluating available resources such as labor, machinery, and facilities. Capacity planning helps balance production levels with available resources to avoid underutilization or overloading. Scheduling: Creating a detailed timetable for production activities, including when each task will be performed and by whom. Effective scheduling minimizes idle time and maximizes throughput, improving overall efficiency. Inventory Management: Determining optimal inventory levels to meet customer demand while minimizing holding costs.