Inventory Control and Performance Measurement Systems

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18 Questions

What is the primary purpose of Fayol's principle of division of work?

To increase productivity by specializing workers in a narrow set of tasks

According to Fayol's principles, what is the relationship between authority and responsibility?

Responsibility is a consequence of authority and where authority is exercised, responsibility arises

How does Fayol's principle of subordination of individual interest to general interest relate to the role of an enterprise in society?

Enterprises should balance the interests of their employees with the interests of the wider community

How does Fayol's principle of unity of command relate to the design of enterprise systems?

Enterprises should have a centralized organizational structure with a clear chain of command

How does Fayol's principle of unity of direction relate to the control of enterprise resources?

Enterprises should have centralized control over their resources to ensure efficient utilization

How does Fayol's principle of discipline relate to the influence of an enterprise on external entities?

Enterprises should balance discipline with external cooperation to maintain a positive reputation

According to the Law of Requisite Variety, what characteristic must a controller have in relation to the system it is controlling?

The controller must have at least as many states as the system being controlled

In an enterprise context, which component fulfills the role of the decision-making function in a control system?

The management structure

What is the primary role of the management structure in an enterprise control system?

To control the systems they are responsible for

In the context of a call center, what is the measured control parameter most likely to be?

The manager's observation of system performance

What is the role of the actuator in an enterprise control system?

To take actions to correct deviations between desired and actual performance

Which of the following is an example of a performance measure for a call center, as mentioned in the text?

The throughput rate, defined as the number of calls per hour the center can handle

Which of the following is a limitation of inventory control systems described in the text?

Inability to accurately track inventory levels over time

What is a prerequisite for good control in a system?

A performance measurement system that provides system state

In the context of enterprise systems, which of the following is a challenge mentioned in the text?

Managing multiple, potentially conflicting parameters

Which of the following actions could lead to unintended consequences in a service enterprise?

Improving the quality of customer responses

Which of the following statements is true, based on the information provided in the text?

Complex systems are difficult to control unless management understands the relationships between goals and actions

Based on the information in the text, which of the following statements is true about enterprise systems?

They may have conflicting performance goals

Explore the importance of inventory control and performance measurement systems in enterprises. Learn about the challenges faced in managing inventory and the necessity of accurate performance measurement for effective management.

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