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

Ahsford university, Knowing your Learning Patterns is important primarily b...

Knowing your Learning Patterns is important primarily because (Points : 1)

Disadvantages of outsourcing for an organisation, Explain FIVE main disadva...

Explain FIVE main disadvantages of outsourcing for an organisation. Surrender of core competence The services may show (or contribute to) a core competence for the organis

Create a histogram of the distribution of total cost values, Synthetic Auto...

Synthetic Auto Insurance is trying to decide how much money to keep in liquid assets to cover insurance claims. In the past, the company held some of the premiums it received in in

How is the communication affected in the organisation, How is the communica...

How is the communication affected in the organisation? Communication: Communication serves like a linking process by through parts of an organization are tied together. G

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

How the manager can use the rational decision making process, Question 1: ...

Question 1: According to the instrumentality theory of motivation, money is the main motivating factor at work. This can explain the existence of performance related pay in man

Minimum cost, Sid and Nancy both need to buy pens for school. The bookstor...

Sid and Nancy both need to buy pens for school. The bookstore has only two types of pens: Basic blue pens (B), which cost $.60 each. Long-lasting green pens (G), which have

Write individual reflections after observing, Write individual reflections ...

Write individual reflections after observing three hours of instruction and analyzing three instructional tools (assessments or project assignments).  Requirements: For ea

#title.what is economic justification for the rapid growth ., what is econo...

what is economic justification for the rapid growth of premium package services?

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