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

How can the internet be used as a business intelligence tool, Question 1: ...

Question 1: (a) Compare and contrast the traditional value chain configuration with that of the value shop. Give appropriate examples to illustrate your answer. (b) Given th

GE matrix components, What are the characteristics of each component of the...

What are the characteristics of each component of the GE matrix?

Describe the food chain approach to food safety, Problem : a) Describe ...

Problem : a) Describe the food chain approach to food safety. b) ‘The Food Law Code of Practice sets out the way local authorities should apply food law, and how they would

What are the entrepreneurship traits, What are the entrepreneurship traits?...

What are the entrepreneurship traits? Entrepreneurship Traits: A successful entrepreneur should possess the given traits: (1) Mental Capability: Mental capability havin

Production problem, Problem 1 (a) Explain what is done during the subse...

Problem 1 (a) Explain what is done during the subsequent audiovisual production phases: (i) Pre-production (ii) Production (iii) Post-Production (b) Mention one prod

What organization chart would you propose to management, Question: The ...

Question: The Twin Peaks Hotel is a mountain lodge with 200 rooms, 3 restaurants, 4 bars, and a 24 hour room service. The hotel has an urgent need to review its Beverage and Fo

Define the desire to succeed of an entrepreneur, Define the desire to succe...

Define the desire to succeed of an entrepreneur. Desire to succeed: An entrepreneur has a strong wish to succeed into life. Their dreams are not only restricted to achie

RESOURCES, EXPLAIN AND USE APPROPRIATE TOOLS AND TECHNIQUES FOR CONDUCTING ...

EXPLAIN AND USE APPROPRIATE TOOLS AND TECHNIQUES FOR CONDUCTING AN INTERNAL APPRAISAL

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