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CMA Intermediate · Operations Management and Strategic Management · Designing of Operational Systems and Control

Which decision is classified as a strategic-level (long-term) decision in operations management rather than a tactical or operational one?

Deciding the location and capacity of a new plant is a strategic operations decision because it commits large capital for a long period and is hard to reverse. Weekly scheduling, shift assignments and expediting orders are short-term operational matters.

  1. ADeciding the location and capacity of a new plantCorrect
  2. BPreparing the weekly schedule of machine jobs
  3. CAssigning workers to shifts for tomorrow
  4. DExpediting a delayed purchase order

Explanation

Facility location and capacity involve large capital, long horizons and are hard to reverse, so they are strategic. Weekly scheduling, shift assignment and expediting are short-term operational decisions.

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