Complex Companies Adopt Decentralization in Order to Realize All of the Following

question 16

Multiple Choice

Complex companies adopt decentralization in order to realize all of the following benefits, except:

• A)delegation of control to lower levels of management, thus facilitating their training and development
• B)improved awareness of, and response to, local conditions
• C)reduced record-keeping
• D)shorter elapsed time from problem identification to decision-making and implementation
• E)no exceptions above

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Definitions:

Kanban Size

Kanban size refers to the quantity of work or production capacity represented by a kanban card in a lean manufacturing system, aimed at controlling the flow of resources through the production process.

Setup Cost

The expenses involved in configuring a process, machine, or system for a particular production run or task.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, depreciation, and opportunity costs.

Safety Stock

Extra inventory kept in reserve to mitigate the risk of stockouts due to fluctuations in supply and demand, serving as a strategic insurance against variability in lead times.