The goal of OM is to optimize a company's profit by balancing costs and revenue.TrueFalse

Clarification of the Statement

The statement asserts that the goal of Operations Management (OM) is to optimize a company's profit by balancing costs and revenue. To evaluate this, we need to consider the primary objectives of Operations Management.

Evaluation

1. Understanding Operations Management (OM): OM focuses on the planning, organizing, and supervising of production, manufacturing, or the provision of services. It involves ensuring that an organization operates efficiently and effectively, using the resources available as effectively as possible.

2. Profit Optimization: The goal of profit optimization is indeed central to many businesses, as it involves maximizing the difference between revenue and expenses. Effective OM can contribute significantly to this objective.

3. Balancing Costs and Revenue: Balancing costs and revenue is a crucial aspect of achieving profit optimization. OM involves making decisions about production processes, quality control, supply chain management, and resource allocation, all of which impact both costs and revenue.

Conclusion

Given the context of Operations Management, one can infer that optimizing profit by balancing costs and revenue is a key objective. Therefore, the statement is True.