What are the effects of trade-offs for operations improvement and how does it relate to efficient frontier?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
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Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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What are the effects of trade-offs for operations improvement and how does it relate to efficient frontier?

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The trade-off principle states that if there is an improvement in one place then a considerable improvement will be lost in another place. It can be considered that trade-offs do no work well in improving the operations because that operational improvement can only be achieved at the expense of losing improvement in the other process.

However, still, two approaches are generally used to manage the trade-offs while improving the operations.

  1. Performance Objective Repositioning: This approach simply repositions the performance objectives in line with the trade-offs happening in the operations.
  2. Efficient Frontier: Efficient Frontier is based on increasing the effectiveness of operations to reduce the effect of trade-off on the operations.
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