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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

Which of the following is an operating (tactical or control-level) decision for the operations manager of an automobile components plant in Chennai, as opposed to a design-level decision?

Sequencing next week's jobs on available machines is an operating decision because it is short-term scheduling within existing capacity. Technology selection, plant site and a five-year product range are design decisions that commit resources for long periods and are difficult to reverse.

  1. ASelecting the technology for a new assembly line
  2. BDeciding the site for a second plant
  3. CSequencing the next week's jobs on available machinesCorrect
  4. DChoosing the product range to be offered over five years

Explanation

Sequencing jobs on machines is a short-term scheduling activity within existing capacity, so it is an operating decision. Technology selection, plant site and long-range product range are design decisions that commit resources for years and are hard to reverse.

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