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

Production capacity of production process, Production Capacity of Productio...

Production Capacity of Production process Here comes the most important of all questions what would be the production capacity of plant at the given process flow. Well there

Describe carefully the elements which contribute to attitude, QUESTION ...

QUESTION Personal attitudes can have a key bearing on how individuals function within organizations. Attitudes may reflect in either positive or negative behaviours. A number o

Discuss the main types of business ownership structures, Question 1: Ti...

Question 1: Timmons and Spinelli (2007) argue that a core, fundamental entrepreneurial process accounts for the substantially greater success pattern among higher potential ve

Line and staff conflict, what are the dynamics and consequences of line and...

what are the dynamics and consequences of line and staff conflict

Identify any one Charismatic leader in an organization, Use the features of...

Use the features of Charismatic Leadership to analyse the man or woman.

What is customer relationship management system, When it comes to very comp...

When it comes to very complex investment decisions, Bannister and Remenyi (2000) argue that management teams often rely on methods which do not fall with in the traditional boundar

Explain about the participation in management of workers, Explain about the...

Explain about the participation in management of workers. Workers’ Participation in Management: Worker’s participation into management can be in any of shape, through est

Service marketing, service marketing in information technology?

service marketing in information technology?

Describe how an organization can assess its service quality, Question 1: ...

Question 1: (a) Total Quality Management (TQM) is an approach to improving the effectiveness and flexibility of a business as a whole (Oakland, 1989). Discuss three of the co

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