The idea that improvement in one aspect of operations performance comes at the expense of deterioration in another aspect of performance is called:
A) Theory of constraints
B) Trade-off theory
C) Limited resource theory
D) Theory of the firm

Question

Quizplus · Accepted Answer

The idea of trade-off theory suggests that improving one aspect of operations performance, such as cost reduction, may lead to a deterioration in another aspect, such as quality or delivery time. This theory recognizes that resources are limited and decisions need to be made about which aspects of performance to prioritize. Theory of constraints and limited resource theory are related concepts but do not specifically refer to the trade-off between different aspects of performance. Theory of the firm is a broader concept that encompasses various aspects of business strategy and decision-making.

The Idea That Improvement in One Aspect of Operations Performance