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

Elaborate the types of psychographic segmentation, Question 1 Analyse t...

Question 1 Analyse the economic factors that affect the commercial real estate market in USA 2 Elaborate the types of Psychographic Segmentation 3 Explain the concepts 1.

Ledership and organization behaviors, what are the challenges of only seein...

what are the challenges of only seeing the behaviors?

Analyze the weaknesses of the eia system, "In the past two decades Mauritiu...

"In the past two decades Mauritius has experienced an unprecedented boom in the tourism industry. Tourism activities are mostly concentrated on the coastal zone and over 90% of th

A pharmacist reviews the order, Draw a Context Diagram and a Level 0 Diagra...

Draw a Context Diagram and a Level 0 Diagram using Visio for  the  following system : The pharmacy at Mercy Hospital fills medical prescriptions for all hospital patients and di

Business can effectively discharge its social obligations, QUESTION 1 S...

QUESTION 1 Strategic decisions are the essence of strategic management. According to Pears & Robinson, typically, strategic issues have certain dimensions. Write short notes on

Macroeconomic, How could utility theory help us understand the difference b...

How could utility theory help us understand the difference between a federal income tax and a federal sales tax on consumer consumption patterns

What are the characteristics of a good title, QUESTION 1 Answer briefly...

QUESTION 1 Answer briefly to any three of the following (a) Why is it important to give your reports an effective visual presentation? (b) What determination(s) do visual

What are the techniques of providing non-monetary motivation, What are the ...

What are the techniques of providing non-monetary motivation? The given are some of the techniques of giving motivation those are non-monetary in nature are as given below:

Determining various stock levels, Another important decision is maintaini...

Another important decision is maintaining inventory and determining the inventory level. An inventory level is a quantitative limit, which should neither be much higher nor

Control of product during inspection, Inspection of production takes time...

Inspection of production takes time which may extend from a few hours to a number of days depending upon the nature of the product. It is necessary to exercise suitable o

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