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

BUSINESS LAW, NAME FOUR CATEGORIES OF ASCERTAINED GOODS

NAME FOUR CATEGORIES OF ASCERTAINED GOODS

What are the restrictions of the matrix organisation, What are the restrict...

What are the restrictions of the matrix organisation? Restrictions of matrix organization: a. Matrix organization violates the principle of unity of command as a person w

Define the desire to succeed of an entrepreneur, Define the desire to succe...

Define the desire to succeed of an entrepreneur. Desire to succeed: An entrepreneur has a strong wish to succeed into life. Their dreams are not only restricted to achie

Problem based on decision trees allow, Decision trees permits: The ...

Decision trees permits: The user to gain a wide idea of possible outcomes of the project/decision, i.e. in this case the selection of two locations Easier understandin

Solar and wind energy business plan, Solar and Wind Energy for India and Pa...

Solar and Wind Energy for India and Pakistan - Case study and business plan I want a case study and full business plan about installing solar power systems and wind energy for

Organising behaviour, what could you do to make Rajinder?s transition easie...

what could you do to make Rajinder?s transition easier?

Write a short note on information system analysis, Q. Write a short note on...

Q. Write a short note on Information System Analysis? Ans. System analysis is the analysis of the trouble that the organization will try to solve with an information system. It

Define the concept and goal of the extraction, (a) Define the concept and g...

(a) Define the concept and goal of the Extraction, Transformation, and Loading (ETL) functionality in relation to the Data Warehouse (DW) solution.  As part of your answer, briefl

What do you understand by the term kinesics, QUESTION 1 (a) Examine cri...

QUESTION 1 (a) Examine critically the three major barriers to inter-cultural communication. (b) Explain how these barriers could be eliminated due to a better understanding

Row minima methods, Row Minima Methods: Steps1: The smallest cost  i...

Row Minima Methods: Steps1: The smallest cost  in the first  row  of the  transportation table  is determined. Let it be C 1j   . allocate as much  as possible amount X 1j

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