9 Integrated Operational Decision Making Free Online FlashCards

What is integrated operational decision making?

Integrated operational decision making evaluates interdependent operations choices together to deliver customer value while balancing cost, speed, quality, flexibility, and risk.

What is a process bottleneck?

The bottleneck is the resource that limits the total output of a process.

How does effective capacity differ from nominal capacity?

Nominal capacity is the stated potential output; effective capacity is the usable output after losses such as downtime, staffing limits, changeovers, and defects.

How should managers account for uncertain demand forecasts?

Compare forecasts with actual demand and consider alternative scenarios because forecasts are uncertain.

What is the central inventory trade-off?

Inventory can protect customer service against variability, but it ties up cash and may become obsolete.

What must a feasible work schedule account for?

A feasible schedule accounts for actual capacity, material availability, due dates, and setup or changeover requirements.

How do operations decisions differ by planning horizon?

Long-term choices shape facilities and process or supply-chain design; medium-term plans balance demand and resources; short-term schedules coordinate daily work.

What is an operational trade-off?

A trade-off occurs when improving one outcome may worsen another, such as lowering inventory while increasing shortage risk.

What is a constraint in operational planning?

A constraint is a condition a feasible plan must satisfy, such as minimum quality or delivery requirements.

What does sensitivity analysis test?

Sensitivity analysis checks whether the preferred decision changes when assumptions such as demand, lead time, cost, or capacity change.

What can scenario analysis reveal?

Scenario analysis compares plausible conditions to reveal bottlenecks and costs that a single forecast or unit-price comparison may miss.

What is the four-week shortfall at 1,000 units of demand and 900 units of capacity weekly?

At 1,000 units of demand and 900 units of capacity per week, the shortfall is 100 units weekly, or 400 over four weeks.