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

Define what is meant by option valuation, A) Define what is meant by Option...

A) Define what is meant by Option Valuation for IS investments. Outline what is aims to achieve. B) Briefly discuss the observation that incremental innovations favour the incum

Explain the various types of networks, Question 1 Explain the various fact...

Question 1 Explain the various factors affecting the use of IT applications in the retail industry? Question 2 What is the impact of e-retailing in the travel and tourism

Influence employees in a business organisation, Question 1: Devise a fr...

Question 1: Devise a framework to analyse the business environment of the University of Technology, Mauritius (UTM), giving examples on how environmental components can affec

How can you improve your listening skills, QUESTION We spend a major po...

QUESTION We spend a major portion of our time either transmitting or receiving information. Research has shown that we spend 45% of all our communicating time listening. Since

Supplier power, what is supplier power in business coaching industry

what is supplier power in business coaching industry

Secondary source of information, #questionList out the secondary sources of...

#questionList out the secondary sources of information while pursuing market research..

What are the functions of lower management, What are the functions of lower...

What are the functions of lower management? Lower Management: This includes Foremen, Office superintendent, Supervision or charge-hands and Inspectors and many more. L

Prepare a development plan, Analyse the development needs of both teams and...

Analyse the development needs of both teams and individuals in order to improve performance. Identify and explain the effectiveness of one or more of the development activities.

Help, Can I work here as assignment writer?

Can I work here as assignment writer?

What is an e-marketing, QUESTION Marketing has been practiced ever sinc...

QUESTION Marketing has been practiced ever since humans engaged with trade and has evolved in line with changes in technology. (a) What is an e-marketing? (b) Explain 10

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