Methods of decision making in operations management
Posted: Sun Jan 19, 2025 3:27 am
Decision-making procedure:
Identifying the problem and its causes.
Selection of criteria for an effective solution. In operational management, the general manager deals only with measurable tasks (possibly several at the same time).
Formulating goals, determining the relationship between them and the variables that can be influenced.
Identifying alternative ways to solve the problem and evaluating them.
Determining the optimal method for solving the problem.
Implementation of the solution and formulation of specific tasks for performers.
Let's look at an example. A company chinese thailand data package produces food products and enters into a supply contract with a chain of retail stores. After a certain period, demand for the product increased, but the volume of production remained unchanged (1). The first batch was delivered to stores at 7 a.m., the next one could not be produced before 1 p.m., not taking into account the delivery time.
Task (2): increase the volume of manufactured products by 50%. To do this, it is necessary to hire new personnel or install more productive equipment, and also to ensure a sufficient amount of raw materials and delivery of an increased batch of goods to the customer (3).
Methods of decision making in operations management
Source: shutterstock.com
Solution methods (4): purchasing new equipment for production (cost – 35 million roubles); hiring additional personnel (will increase production volumes by no more than 30%); establishing a longer work shift; engaging a third-party contractor to produce the missing quantity of products (but there is no guarantee of identical quality).
Decision (5) was made: to establish a longer work shift and to expand the staff by 7 people. This will lead to achieving the required production volume no later than in 4 days, and after another 5 days it will be possible to increase the volume of output.
To study options in which several variables are present, models are built in operations management:
Mathematical: calculation of break-even point, finding critical points.
Statistical: planning (analysis of financial activities), quality control, decision theory.
Linear and mathematical – placement analysis, forecasting.
Queuing theory is the study of queue length and waiting time.
Computer simulations of services, service systems, investment services.
Inventory model – analysis of reserves, determination of order based on accounting data.
Network models – operational control of large objects (business center, shopping mall).
Identifying the problem and its causes.
Selection of criteria for an effective solution. In operational management, the general manager deals only with measurable tasks (possibly several at the same time).
Formulating goals, determining the relationship between them and the variables that can be influenced.
Identifying alternative ways to solve the problem and evaluating them.
Determining the optimal method for solving the problem.
Implementation of the solution and formulation of specific tasks for performers.
Let's look at an example. A company chinese thailand data package produces food products and enters into a supply contract with a chain of retail stores. After a certain period, demand for the product increased, but the volume of production remained unchanged (1). The first batch was delivered to stores at 7 a.m., the next one could not be produced before 1 p.m., not taking into account the delivery time.
Task (2): increase the volume of manufactured products by 50%. To do this, it is necessary to hire new personnel or install more productive equipment, and also to ensure a sufficient amount of raw materials and delivery of an increased batch of goods to the customer (3).
Methods of decision making in operations management
Source: shutterstock.com
Solution methods (4): purchasing new equipment for production (cost – 35 million roubles); hiring additional personnel (will increase production volumes by no more than 30%); establishing a longer work shift; engaging a third-party contractor to produce the missing quantity of products (but there is no guarantee of identical quality).
Decision (5) was made: to establish a longer work shift and to expand the staff by 7 people. This will lead to achieving the required production volume no later than in 4 days, and after another 5 days it will be possible to increase the volume of output.
To study options in which several variables are present, models are built in operations management:
Mathematical: calculation of break-even point, finding critical points.
Statistical: planning (analysis of financial activities), quality control, decision theory.
Linear and mathematical – placement analysis, forecasting.
Queuing theory is the study of queue length and waiting time.
Computer simulations of services, service systems, investment services.
Inventory model – analysis of reserves, determination of order based on accounting data.
Network models – operational control of large objects (business center, shopping mall).