 First of all, we have to decide why we require the production planning. As we know that production process is not a process that is without certain conscious effort. It requires a lot of decision of the entrepreneur. Entrepreneur has to decide what he has to produce, how he has to produce and for whom it has to produce. So when these decisions has to be taken by a group of people or by a single person, he has to take many decisions keeping in view certain resources and keeping in view certain constraints. So when these things are there, he has to face the inflationary prices of the input. He has to face the marketing competition of the other competing firms and at the same time change might be in the weather or change might be in the demand of the consumer. So these are the factors that require the entrepreneur or the producer to plan certain things and what is needed. When we say it requires all the type of the information in a very precise manner, accuracy so that all these information related to inputs, output, the weather, the transportation, the supply chain, they are collected related to the marketing strategy and even if there can be any conflict between the HR or anything, how they have to be resolved. So these all information and the procedure they have to be laid out before the start of the production process. Therefore, production planning is a comprehensive process that has to be started and completed just before the start of actual process of production by a manufacturer or a producer. So when the production planning will be there, it provides us the best two benefits. Number one, for the consumers it provides the best output, it provides them the best quality output and for the entrepreneur it provides them the opportunity to have the maximum level of the output with the given level of the input and the resources. Therefore production planning is not only necessary to save the entrepreneur from the loss or other words we can say it is the best way to have a profit maximization for the entrepreneur. Now coming to the next points, what are the basic steps that are incorporated in the production planning. So it is not only one step, here the producer has to decide what should be the supply chain management and what the decision he has to take, what should be the production scheduling means, which type of the input he has to take at which price and at which time because there can be possibility that all the inputs they are not required at a time. So before the start of the production a lining of the timing is very important that which input will be required at which stage keeping in view might be the shelf life of the input and at the same time shelf life of the output. Second part of the completion of the production scheduling it further requires the capacity planning here the capacity does not only refer to the capacity of the labor rather it is also the capacity of the capital means which plant has the capacity to produce how many units of the output might be the consumer might be the producer is having two or the more three plants and each plant might be having a different capacity of the production. So before the start of the production producer has to decide that which production plan has to be executed in which part of the production setup and how much capacity will be utilized and for that capacity of production what will be the level of the inputs material the energy the labor that will be required and if this will be starting how the production lead time will be started means when the mark things that will be produced they will be put for the sale in the market. So there is a very long setup or we can say a very chain reaction process that has to be decided step by step by the production processors and the entrepreneurs after this we can say that this production plan it cannot be executed and if we say in simple words production planning we do whatever the entrepreneur decides it is not possible until he makes a decision to follow the production function so from here it becomes very clear that the production function is a basic essence of our production planning or we can say production planning or production function it can be done only one thing. And that is why the production function we can say that the production function that is a mathematical relationship or we can say that it is a technical relationship between the inputs and the output and when we say that input and the output it means they both are required to produce certain level of output. So when we have to decide the economic profit we have to come to a point means that either it is inputs either it is output or it is the revenue or it is the cost they both require a particular level of that is the level of the output how much it has to be produced that is the level of the output we can say that the producer has to spend how much he has to spend and with the same output when we multiply it with its market price we will say that this is its revenue. That is why when we talk about the economic profit then the economic profit is always equal to the total revenue minus total cost and when we talk about the cost here then we have two types of cost one that is called explicit cost and the other is called implicit cost. If we look at the explicit cost then these will be the expenses that we can see with the amount of profit and if we say the second implicit cost then these will be the ones that we include in the form of opportunity cost in this system. So now if we look at all these setups, if we look at this equation when we make our profit we can say that there are three types of the prices, price of output P, price of capital V and the price of the labor W. So these are the three prices that a price taker firm cannot influence. So a price taker firm has only two things in his hand that is capital and the labor. So for the economic profit the entrepreneur has to decide only and only through the two variables that is the capital and labor and through his management scale or the production planning that how much he is going to produce and how much amount he has to produce.