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.
- AAssigning today's jobs to available machines
- BDeciding the location and capacity of a new manufacturing plantCorrect
- CPreparing the weekly shift roster for operators
- 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.
Did you get it right without looking?
One question tells you little. A timed set on Operations Planning shows your real accuracy, how long you take and where you lose marks.
More Operations Planning questions
- A plant in Pune has a design capacity of 1,000 units per day and an effective capacity of 800 units per day. Actual output is 640 units per …
- A plant with fixed costs of Rs 6,00,000 per year and variable cost of Rs 150 per unit is compared with another plant with fixed costs of Rs …
- In operations planning, which of the following best describes the main purpose of aggregate planning?
- In capacity planning, the ratio of actual output achieved to the effective capacity of a facility is called:
- Rohan Foods forecast demand for a product in July as 500 units using exponential smoothing with alpha 0.2. Actual July demand was 600 units.…
- Kaveri Textiles uses a simple moving average of the last three months to forecast demand. Sales for the last three months were 420, 450 and …