Question

- What is the planning horizon?
A. The distance ahead for the forecasts on which plans are made.
B. The time period within which uncertainty is very low.
C. The time ahead for which there is no information.
D. The maximum time for which managers can make plans.​

Answer 1

Answer:

The planning horizon is the amount of time an organization will look into the future when preparing a strategic plan. Many commercial companies use a five-year planning horizon, however a general Planning horizon is around one year. ... In economics, a planning horizon is the length of time an individual plans ahead.

Answer 2

The correct answer is: (option a) The distance ahead for the forecasts on which plans are made.

The planning horizon is the distance ahead for the forecasts on which plans are made.

• The amount of time (i.e., the total number of weeks or months) into the future for which plans are established is known as a planning horizon. The best strategy would take into account all available information related to events in the future.
• The length of time an organization will look into the future while creating a strategic plan is known as the planning horizon. Though a typical planning horizon is around a year, many commercial businesses use a five-year one.
• A planning horizon in manufacturing refers to the period of time in the future during which parts of the organization or department that support production will schedule production tasks and decide what materials are needed.
• A planning horizon in economics refers to how far in advance someone makes plans. In the quest for overall worth rather than temporary pleasure, it is crucial.

Therefore, (option a) The distance ahead for the forecasts on which plans are made, is the correct option.

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