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CMA Intermediate · Operations Management and Strategic Management · Operations Planning

In the hierarchy of operations planning, which decision is classified as a long-range (strategic) operations planning decision rather than a short-range one?

Deciding the location and capacity of a new plant is a long-range strategic planning decision because it commits heavy capital for many years. Daily job assignment, shift rosters and machine sequencing are short-range operational decisions that cover only days or weeks.

  1. AAssigning today's jobs to available machines
  2. BDeciding the location and capacity of a new manufacturing plantCorrect
  3. CPreparing the weekly shift roster for operators
  4. DSequencing orders on a machine for the next two days

Explanation

Facility location and capacity involve large capital commitments and long time horizons, so they are long-range decisions. Job assignment, shift rosters and sequencing are short-range scheduling decisions covering days or weeks.

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