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 different wireless technologies, Question 1 Explain any five a...

Question 1 Explain any five architectural components of CRM solution Question 2 Explain the different wireless technologies Question 3 Explain the meaning of Elect

Most common barriers to communication, Question 1: (a). Elaborate on th...

Question 1: (a). Elaborate on the stages that form the writing process and explain the value of spending time on the first two stages. Justify their importance. (b). Show wr

Demonstrates the skill at different levels of management, Demonstrates the ...

Demonstrates the skill at different levels of management? Require for a skill at various levels of Management is demonstrated below into the diagram as demonstrated below:

Ethical Organisational Management, Evaluate factors which could influence o...

Evaluate factors which could influence organisational ethics.

Send the mail to all the staffs, QUESTION Nathan is the floor Manager a...

QUESTION Nathan is the floor Manager at Bell Enterprise. Lately he has been concerned with staffs not respecting the lunch hours. He has warned them but with no avail. He then

Explain the task of research and development wing, Q. Discuss the main task...

Q. Discuss the main task of Research and Development (R & D) wing in the context of development of modern society? Ans. THE MAIN TASK OF RESEARCH AND DEVELOPMENT In the l

Organizational aspects of system life cycles, Problem 1. What do you un...

Problem 1. What do you understand from Organizational Aspects of system Life Cycles? Explanation 2. Create your own definitions of a system. Based on the "system" d

Porject related, what is a best topic in submit project to international bu...

what is a best topic in submit project to international business management

Organisation decision to invest in a new enterprise system, (a) When measur...

(a) When measuring the returns on technology investments, Douglas Hubbard (2007) argues that "Everything Is Measurable". Discuss this statement in relation to an organisation's dec

Mr, Identify development opportunities to meet current and future defined ...

Identify development opportunities to meet current and future defined needs?

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