dolution

The efficient frontier is defined as the set of firms that are not Pareto dominated. The locations of these firms on the capability chart will be a strategic trade-off between the strategic dimension and Cost performance. An example based on Responsiveness vs. Cost Performance can be seen on Page 5 of the prescribed textbook: Operations Management 2nd Edition, Cachon and Terwiesch 2020. The shape of this frontier appears negatively correlated with High Responsive associated with high Cost and Low Responsiveness with Low Cost. Required: Please answer all the following questions:

1) Consider a firm that has focused on Customization (Product Range) as its strategy. Would you expect a similarly shaped frontier (Responsiveness vs. Cost Performance) if Customization was plotted against Cost Performance? Provide justification to support your answer. [max 500 words]

2) Now, consider a different organization that has chosen Quality as their strategic focus. Would you expect a similarly shaped frontier (Responsiveness vs. Cost Performance) if Quality were plotted against Cost Performance? Provide justification to support your answer.