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Explain the Concepts of Organization Chart, Formal Structure, and Informal

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Essay

Explain the concepts of organization chart, formal structure, and informal structure. Why must a manager understand both the formal structure and the informal structure of an organization?


Definitions:

Pipeline Inventory

Inventory that is currently in transit between locations or stages in a supply chain. It represents goods that are not yet available for sale or use.

Periodic Review System

A system of inventory control where the inventory levels are reviewed at fixed intervals to determine the reorder quantity.

Order Up To Level

A replenishment strategy where inventory is restocked to a predetermined level each time an order is placed to maintain stock availability.

Lot Size

The quantity of inventory items that a company orders or produces in a single production run or order, affecting inventory costs and management strategies.

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