Inventory Control and Performance Measurement Systems

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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?

Enterprises should have a centralized organizational structure with a clear chain of command (A) Signup and view all the answers

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 (B) Signup and view all the answers

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 (A) 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?

The controller must have at least as many states as the system being controlled (A) Signup and view all the answers

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

The management structure (B) Signup and view all the answers

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

To control the systems they are responsible for (D) Signup and view all the answers

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

The manager's observation of system performance (A) Signup and view all the answers

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

To take actions to correct deviations between desired and actual performance (D) 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?

The throughput rate, defined as the number of calls per hour the center can handle (B) Signup and view all the answers

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

Inability to accurately track inventory levels over time (B) Signup and view all the answers

What is a prerequisite for good control in a system?

A performance measurement system that provides system state (D) Signup and view all the answers

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

Managing multiple, potentially conflicting parameters (A) Signup and view all the answers

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

Improving the quality of customer responses (C) Signup and view all the answers

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 (C) Signup and view all the answers

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

They may have conflicting performance goals (D) Signup and view all the answers