What are 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, and determining how much inventory to keep on hand.

Operating decisions are made within the context of longer-term strategic decisions, so that an organization’s strategy is always supported by its operating decisions.