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

Approaches for handling customer complaints, Explain some of the approaches...

Explain some of the approaches for handling customer complaints and listening to customers

Digital divide, 1. Define the digital divide and suggest ways to close it. ...

1. Define the digital divide and suggest ways to close it. 2. Do you consider that the Australian government has achieved the right balance between encouraging Internet adoption o

Discuss the concept of open-to-buy system, Question 1 Explain the various ...

Question 1 Explain the various principles of an ideal merchandising giving suitable examples for each? Question 2 Enumerate the category management strategies that are use

Account setup - business processes, When a customer wants a prescription fi...

When a customer wants a prescription filled, a sales associate receives the member's card and prescription and logs the request in a prescription log which contains the member's nu

Planning process control network, The process controls mainly pertain to t...

The process controls mainly pertain to the activities which are required to be carried out at any particular stage of the process. Often the final product will comprise of a

Balance sheet, last year''s profit and loss account is which catagory ? ass...

last year''s profit and loss account is which catagory ? asset or liability

Mission and vision of your organization, QUESTION (a) Describe the five...

QUESTION (a) Describe the five basic propositions which form the premise of Neher's view on organizational communication. (b) (i) Differentiate between the functionalist

Define the term training, QUESTION 1 (a) Define the term training (b...

QUESTION 1 (a) Define the term training (b) Clearly explain the benefits that an organisation derives from training QUESTION 2 (a) Explain the term reward management

Case study, You will be asked five questions about it from a range of topic...

You will be asked five questions about it from a range of topics covered in the unit.

Using examples explain why people need to communicate, QUESTION 1 (a) ...

QUESTION 1 (a) Using examples explain why people need to communicate in business. (b) Briefly outline the five main attributes of a successful business communicator. (c)

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