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At the operational level hundreds of decisions are made in order to achieve local outcomes that contribute to the achievement of a company’s overall strategic goal. These local outcomes are usually not measured directly in terms of profit,but instead are measured in terms of quality,cost-effectiveness,efficiency,productivity,and so forth. Achieving good results for local outcomes is an important objective for individual operational units and individual operations managers. However,all these decisions are interrelated and must be coordinated for the purpose of attaining the overall company goals. Decision making is analogous to a great stage play or opera,in which all the actors,the costumes,the props,the music, the orchestra,and the script must be choreographed and staged by the director,the stage managers,the author,and the conductor so that everything comes together for the performance. For many topics in operations management,there are quantitative models and techniques available that help managers make decisions. Some techniques simply provide information that the operations manager might use to help make a decision; other techniques recommend a decision to the manager. Some techniques are specific to a particular aspect of operations management; others are more generic and can be applied to a variety of decision-making categories. These different models and techniques are the “tools”of the operations manager. Simply having these tools does not make someone an effective operations manager,just as owning a saw and a hammer does not make someone a carpenter. An operations manager must know how to use decision-making tools. How these tools are used in the decision-making process is an important andnecessary part of the study of operations management. In this supplement and others throughout this book,we examine several different aspects of operational decision making using thesetools. Decision analysis: a set of quantitative decisionmaking techniques for decision