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As priority planning progresses through various levels of capacity validation, what observation is accurate?

  1. The duration of the planning horizon extends longer.

  2. Material requirements planning focuses on bottlenecks only at the component level.

  3. Master scheduling encompasses resource capacities at the end-item level.

  4. Sales and operations planning coordinates critical resources at the product family level.

The correct answer is: Sales and operations planning coordinates critical resources at the product family level.

The observation that sales and operations planning coordinates critical resources at the product family level is accurate because this level of planning aims to align supply and demand by considering aggregates of products rather than focusing on individual items. Sales and operations planning (S&OP) integrates various functions such as marketing, production, and finance to ensure that an organization can meet market demand while managing its resource capabilities effectively. Analyzing resources at the product family level allows for a holistic view of production capacity, inventory management, and sales forecasting, leading to better decision-making that enhances efficiency and responsiveness to market needs. In contrast, the other choices either focus too narrowly (like bottlenecks at the component level) or misrepresent the levels involved in different planning processes (like master scheduling). Master scheduling indeed deals with end-item levels, while priority planning involves different levels of capacity validation, and the planning horizon does not necessarily extend longer through this process. Understanding how S&OP functions at a broader level helps clarify the interconnectedness of various elements within supply chain operations.