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

Explain the organisational structure, Probelm 1: An organisational stru...

Probelm 1: An organisational structure defines how job tasks are formally grouped and coordinated. (a) What are the key elements considered when designing an organisation's

Briefly discuss how management theory evolved, QUESTION Great feats of ...

QUESTION Great feats of human achievement such as the Egyptian pyramids, the Great Wall of China, the Colosseum in Rome and the Taj Mahal in India all bear testimony to skilled

Location selection in USA, Procedure for carrying out location selection an...

Procedure for carrying out location selection and analysis for a new production facility in the United States of America. Chemical plant facility to serve the automotive market of

Successful implementation of each of the information systems, QUESTION ...

QUESTION The Sengapa Garments Ltd (SG Ltd) is a company engaged in the manufacture of T-Shirt and allied textile products for the local market and for exports. SG Ltd is still

What are the functions of the employment relations tribunal, Question 1: ...

Question 1: (A) What do you understand by Collective Bargaining? (B) What is collective bargaining from: (I) The economic point of view

Explain the product development, During the course of the module you were a...

During the course of the module you were asked to study the targeted market of three local brands. You have now been employed by an Apparel industry as Merchandiser, and you have b

Explain a business model, Question: Using Amazon.com as a business mode...

Question: Using Amazon.com as a business model: (a) Describe its positioning in the Internet value network. (b) Discuss the value configuration(s) of the online bookshop

Leadership, Could empowerment lead to powerless leaders, why or why not?

Could empowerment lead to powerless leaders, why or why not?

Financial management, .discuss the applicability of an operating cycle to p...

.discuss the applicability of an operating cycle to poultry business in uganda

Marketing Management, Steps involved in designing a channel system, Marketi...

Steps involved in designing a channel system, Marketing Management

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