Operating decisions

Operating decisions are determinations made in regard to the routine, ongoing activities of an organization. Examples of operating decisions are:

  • Which customer orders to schedule for production
  • Which components and raw materials to buy from suppliers
  • Scheduling production equipment for use
  • Deciding the nature of a marketing campaign
  • Deciding where to invest excess funds
  • Determining how much inventory to keep on hand

Operating decisions are made within the context of longer-term strategic decisions.