ABSTRACT
The decisions have been analyzed according to a specific time period. It makes perfect sense that short-term decisions should use a monthly time period, or even weekly, to examine the relevant immediate ramifications. When a very substantial opportunity is put on the table or a big move involving a substantial investment is considered, it is necessary to use longer-time frames, such as a quarter, a year, or even several years, to check the full ramifications. The important realization coming from the seasonality case is the need to carefully consider the appropriate time horizon over which the decisions on the table should be evaluated. For instance, within a peak demand period, the amount of sales might hypothetically require double the available capacity of the weakest-link resource during that time period. The discussion about project environments also applies to service providers, not-for-profit companies, retail, distribution and manufacturing, whether making finished goods for inventory or making products directly to customer orders.
