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

Pharmaceutical services industry, Paisano Pharmacies, a fictitious business...

Paisano Pharmacies, a fictitious business in the pharmaceutical services industry, is owned by VictorPaisano. Currently, Paisano has two pharmacieslocated in Killeen and Temple, Te

What are programme evaluation and review technique, What are Programme Eval...

What are Programme Evaluation and Review Technique? PERT (Programme Evaluation and Review Technique): It is a technique used for controlling and scheduling the projects w

Prepare an eia for an integrated resort scheme, As an EIA Consultant you ha...

As an EIA Consultant you have been requested by a promoter to prepare an EIA for an Integrated Resort Scheme (IRS) project consisting of 150 Villas, an 18 Hole International Level

Introduction to business planning, our CLC business plan I am responsible f...

our CLC business plan I am responsible for financial information I need a help

Explain diffusion of innovation theory, A) "Diffusion of innovation theory ...

A) "Diffusion of innovation theory is relevant to software, where software is considered as an innovation. In particular, the elements of diffusion, the innovation decision process

Bulk purchasing, Every morning a purchasing assistant will take the previou...

Every morning a purchasing assistant will take the previous day's prescription log and parse it into two history files: filled prescriptions (drug name and quantity sold), and unfi

How managers deal with elements of the specific environment, QUESTION 1 ...

QUESTION 1 How has Henry Mintzberg and others contributed to identify the roles and skills of a manager? QUESTION 2 (a) Outline the major elements that make up the gene

Service marketing, service marketing in information technology?

service marketing in information technology?

Definition of liquidity problem, An examination of up to three reasons is a...

An examination of up to three reasons is adequate for maximum marks. a)  Cash Flow estimate for Cottam Stationers Aug   Sep Oct Nov

Test markiting, various approches in test marketing.

various approches in test marketing.

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