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

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

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

Expert Solution
Step 1

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.
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Outsourcing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.