What Is the Key to Efficient Decision Making and Performance

question 16

Multiple Choice

What is the key to efficient decision making and performance in a matrix structure?

• A) Dual authority and centralised approval
• B) Managers and staff with strong interpersonal and communication skills
• C) Cooperation and communication between functional and divisional managers
• D) Capable administrators

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Definitions:

Shortage Cost

Shortage cost refers to the costs a company incurs when it is unable to meet demand due to insufficient inventory or resources.

Net Working Capital

The discrepancy between an organization's immediate assets and its short-term obligations, showing the accessible liquidity to manage its activities.

Just-in-Time Inventory (JIT)

A supply chain management strategy aimed at reducing inventory costs and waste by receiving goods as they are needed in the production process.

Minimize Inventory

A strategy aimed at reducing the amount of inventory to lower storage costs and reduce the risk of stock obsolescence.