Zero-sum and frontier trade-offs: an investigation on compromises and compatibilities amongst manufacturing capabilities

Sarmiento, Roberto and Shukla, Vinaya ORCID: https://orcid.org/0000-0002-2546-4931 (2010) Zero-sum and frontier trade-offs: an investigation on compromises and compatibilities amongst manufacturing capabilities. International Journal of Production Research, 49 (7) . pp. 2001-2017. ISSN 0020-7543 [Article] (doi:10.1080/00207540903555544)

Abstract

This paper examines well-accepted methodologies and rationales used to assert the presence/absence of trade-offs and compatibilities between manufacturing capabilities, and comparisons are made with respect to more recent theoretical developments. By means of a detailed analysis of a representative framework, important limitations and inconsistencies are identified. The proposal for the existence of zero-sum and frontier trade-offs intends to resolve some of those issues. Generally speaking, zero-sum trade-offs are identified by a statistically significant and negative correlation. On the other hand, frontier trade-offs are predicted to be observed after some level of compatibility between different capabilities is achieved. This means that, apart from widely-used probabilistic methodologies such as linear regression/correlation analysis, subsequent deterministic approaches and rationales need to be applied in order to acknowledge the potential existence of frontier trade-offs. These and other implications are discussed in light of previous studies, and suggestions for future research are offered.

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