Inventory Control and Performance Measurement Systems
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Questions and Answers

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

  • To promote cooperation and teamwork among workers
  • To increase productivity by specializing workers in a narrow set of tasks (correct)
  • To reduce the overall cost of production
  • To ensure that workers have a clear understanding of their responsibilities
  • According to Fayol's principles, what is the relationship between authority and responsibility?

  • Authority and responsibility are independent of each other
  • Authority and responsibility should be evenly distributed among all employees
  • Responsibility should always be greater than the authority given to a manager
  • Responsibility is a consequence of authority and where authority is exercised, responsibility arises (correct)
  • How does Fayol's principle of subordination of individual interest to general interest relate to the role of an enterprise in society?

  • Enterprises should always prioritize the interests of their shareholders over the interests of their employees
  • Enterprises should always prioritize the interests of the state over the interests of the enterprise
  • Enterprises should balance the interests of their employees with the interests of the wider community (correct)
  • Enterprises should ignore the interests of the wider community and focus solely on their own interests
  • How does Fayol's principle of unity of command relate to the design of enterprise systems?

    <p>Enterprises should have a centralized organizational structure with a clear chain of command</p> Signup and view all the answers

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

    <p>Enterprises should have centralized control over their resources to ensure efficient utilization</p> Signup and view all the answers

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

    <p>Enterprises should balance discipline with external cooperation to maintain a positive reputation</p> Signup and view all the answers

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

    <p>The controller must have at least as many states as the system being controlled</p> Signup and view all the answers

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

    <p>The management structure</p> Signup and view all the answers

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

    <p>To control the systems they are responsible for</p> Signup and view all the answers

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

    <p>The manager's observation of system performance</p> Signup and view all the answers

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

    <p>To take actions to correct deviations between desired and actual performance</p> Signup and view all the answers

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

    <p>The throughput rate, defined as the number of calls per hour the center can handle</p> Signup and view all the answers

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

    <p>Inability to accurately track inventory levels over time</p> Signup and view all the answers

    What is a prerequisite for good control in a system?

    <p>A performance measurement system that provides system state</p> Signup and view all the answers

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

    <p>Managing multiple, potentially conflicting parameters</p> Signup and view all the answers

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

    <p>Improving the quality of customer responses</p> Signup and view all the answers

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

    <p>Complex systems are difficult to control unless management understands the relationships between goals and actions</p> Signup and view all the answers

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

    <p>They may have conflicting performance goals</p> Signup and view all the answers

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