Production:  Process of converting resources to output with the help of technology.

Production Plan: It is a blue-print which seeks the answer of the following questions:

(1) what to produce?,

(2) how much to produce?,

(3) to whom it is to be produced?,

(4) how to produce?,

(5) where to produce?, and

(6) when to produce?

Production Planning:

It refers to the process of preparing a blue-print (i.e. production plan) which seeks answer the following question:

1. What to produce?

-determined by price level of the commodity in economy and number of potential

buyers which is depend on demand

2. How to produce?

-depend on type of technology

3. Where to produce?

-depend on comparative advantage (grow those where MR is higher. For examples,

Fruits > Cereal in context to Nepal, Rice > Soybean in irrigated region). Agricultural

export zone, Eg. Mustang for Grape, Jumla for Apple, Illam for Tea and High-mid

Himalaya for livestock.

-produced in those places where there is either low/no transportation cost and

minimize transportation cost.

4. How much to produce?

-depend upon demand and supply scenario.

5. When to produce?

6. For whom to produce?