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When considering decision-making in a supply chain to optimize surplus, which categorization reflects the impact timeframe and frequency of decisions, acknowledging uncertainty over the decision horizon?

A) Short-term, operational decisions
B) Long-term, strategic decisions
C) Medium-term, tactical decisions
D) Ad hoc decisions without a defined timeframe

1 Answer

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Final answer:

Categorization C) Medium-term, tactical decisions is the classification that reflects the impact timeframe and frequency of decisions, acknowledging uncertainty over the decision horizon within supply chain optimization.

Step-by-step explanation:

When considering decision-making in a supply chain to optimize surplus, the categorization that reflects the impact timeframe and frequency of decisions, acknowledging uncertainty over the decision horizon, would be C) Medium-term, tactical decisions. This level of decision-making bridges the gap between operational and strategic decisions. Tactical decisions are typically revisited more often than strategic ones but with a longer-term focus than operational decisions.

Economists refer to this type of decision-making as intertemporal decision making because it spans across different time periods. This is especially relevant when considering long-term actions such as investment, which affect the surplus and overall health of a supply chain. Understanding the nuances between short-term operational, medium-term tactical, and long-term strategic decisions will help provide clarity in making choices that impact the supply chain over different time horizons.

User Vitaly Migunov
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