It refers to process of preparing 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?