Minimum maximum technique , Business Management

Assignment Help:

Minimum Maximum Technique: The minimum maximum system is often used in connection with manual inventory control systems. The minimum quantity is established in the same way as any re order point. The maximum is the minimum quantity plus the optimum lot size. In practice a requisition is imitated when a withdrawal reduces the inventory below the minimum level and the order quantity is the maximum minus the inventory status after the withdrawal. If the final withdrawal reduces the stock level substantially below the minimum level the order quantity will be higher than the calculated EOQ.

The effectiveness of a minimum maximum system is determined by the method and precision with which the minimum and maximum parameters are established. If these parameters are based upon arbitrary judgments with a limited factual basis the system will be limited in effectiveness. If the minimum maximum are based on an objective rational basis the system can be very effective.


Related Discussions:- Minimum maximum technique

Predictive maintenance, This is a modern concept having excellent future...

This is a modern concept having excellent future prospects. Maintenance is more relevant with palnt and machinery of mechanical design having more number of moving parts.

Enteprenuership and SMEs, Solutions to a gradual decline in sales in an ind...

Solutions to a gradual decline in sales in an indian restaurant in London

RESOURCES, EXPLAIN AND USE APPROPRIATE TOOLS AND TECHNIQUES FOR CONDUCTING ...

EXPLAIN AND USE APPROPRIATE TOOLS AND TECHNIQUES FOR CONDUCTING AN INTERNAL APPRAISAL

Wordings of dale yoder about performance appraisal, Illustrate the wordings...

Illustrate the wordings of Dale Yoder about performance appraisal? According to Dale Yoder about performance appraisal : The performance appraisal is like “all formal pro

Describe the informational roles of managers, Question: Fun World Ltd i...

Question: Fun World Ltd is a small manufacturer of computer games, which has been able to compete against the largest businesses in the industry. Simon, the new Managing Direct

What are the benefits of effective business communication, QUESTION 1 a...

QUESTION 1 a) Explain the seven elements involved in a Communication Process b) With reference to the 7C's and 4S's, explain how communication can be improved in a business

What are the relatively distinct leadership styles, What are the relatively...

What are the relatively distinct leadership styles? The three relatively distinct leadership styles are as illustrated below: 1. Authoritarian: leader makes every decision

Just in time manugacturing, JIT  is a Japanese production  management  phil...

JIT  is a Japanese production  management  philosophy which  has been applied in practice since the  early  1970s  in many  Japanese manufacturing organizations. There  are strong

Contributing factors for aspect of individual behaviour, What are the contr...

What are the contributing factors for specified aspect of individual behaviour? For any specified aspect of individual behaviour, here may be several contributing factors. The

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd