Read the following passage and answer the question.

Madhu completed her food technology degree two years ago. Initially, she worked in a company manufacturing chutneys, pickles, etc. After working in that company, she decided to venture into a organic food processing unit. Setting specific objectives and targets, Madhu devised a plan to achieve them. One key objective was to achieve a 8% profit in the first year. To facilitate this, Madhu planned to source raw materials like fruits, vegetables, and spices on a two-month credit from farmers engaged in organic cultivation. Additionally, she opted to manage the marketing of her products through her own outlets. In the organizational setup, Mohani took on the role of Production Manager, responsible for determining the precise procedures for production activities. Mohani also calculated the required workforce throughout the year based on Madhu's sales targets for different products and areas in the upcoming quarter. Maintaining a focus on safety and hygiene during production, Madhu implemented a penalty of ₹50 per day for failure to wear the mandatory caps, gloves, and aprons. This measure aimed to ensure a clean and secure working environment in the factory.

'Madhu planned to source raw materials like fruits, vegetables, and spices on a two-month credit from farmers engaged in organic cultivation.'

Which type of plan is discussed in the above line?

Standing plan

The correct answer is option 1- Standing plan.

Here, Policy plan is highlighted in the given lines. The company made a policy of sourcing raw materials like fruits, vegetables, and spices on a two-month credit from farmers engaged in organic cultivation.' And policy comes under the standing plan.

* Policies are general statements that guide thinking or channelise energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms.  They are guides to managerial action and decisions in the implementation of strategy.

* A standing plan is used for activities that occur regularly over a period of time. It is designed to ensure that internal operations of an organisation run smoothly. Such a plan greatly enhances efficiency in routine decision-making. It is usually developed once but is modified from time to time to meet business needs as required. Standing plans include policies, procedures, methods and rules. Policies are general forms of standing plans that specifies the organisations response to a certain situation.