This text provides informative, short introductions to the core concepts of Operations Management. This text contains more than 50 concept entries and is fully cross-referenced.An outstanding reference for Operations Management students at all levels.
A trade-off exists when an organisation cannot perform simultaneously on two performance dimensions: in order to increase performance on one performance dimension it has to decrease performance on the other dimension.
The Strategic Trade-off Debate
The concept of a strategic trade-off has been a controversial issue in operations management. For example, in the 1970s it was widely accepted that a cost/quality trade-off and a flexibility/cost trade-off existed in the automotive industry. Cheaper cars were of lower quality and high quality cars were expensive. Cheap cars came with no options and expensive cars had many options. This was challenged in the 1980s when markets witnessed the arrival of Japanese cars, which were available in more versions with more options, were of better quality, and were also cheaper! ...