For the purposes of production planning, product groups should be established on the basis of:
A) market segments
B) similarity of manufacturing process
C) the availability of materials
D) the availability of machinery
E) all of the above

Question

Quizplus · Accepted Answer

Establishing product groups on the basis of similarity of manufacturing process allows for more efficient production planning and optimization. It helps to minimize changeovers between different products and reduces setup times, leading to higher productivity and lower costs. While market segments, availability of materials, and machinery may play a role in determining product groups, they are not as critical as the similarity of manufacturing process. Therefore, option B is the best choice.

For the Purposes of Production Planning, Product Groups Should Be