Correct option is B
The type of production planning that involves setting output levels, scheduling production, and coordinating resources across departments is Aggregate Production Planning (APP). APP focuses on determining the overall production rate, workforce level, and inventory for a medium-term horizon, ensuring that resources across departments are balanced to meet forecasted demand efficiently. Master Production Planning deals with detailed scheduling of specific products, Material Requirement Planning focuses on materials and components, and Capacity Planning determines the production capacity needed to meet demand, but APP provides the integrated, high-level planning framework.