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

Asymmetric information problems in financial markets, QUESTION 1 Explai...

QUESTION 1 Explain any Three of the following: 1. Demand for money 2. Banking regulation 3. Eurocurrency markets 4. Interest rate differentials 5. Asymmetric Inf

Problem based on exquisite flowers, Normal 0 false false fa...

Normal 0 false false false EN-US X-NONE X-NONE a) The benefits to Natalie in operating as a soli

Audience analysis, Imagine that you have to make an oral presentation on th...

Imagine that you have to make an oral presentation on the features of the EduNext portal to new students of the SMU MBA program. Prepare an outline of the presentation and specify

The new government when establishing a suitable tax, The country of Changel...

The country of Changeland has, for many years, operated as a military dictatorship. Last year, though, a people's revolution brought a democratic election for the first time in liv

How is pricing affected in marketing management, How is pricing affected in...

How is pricing affected in marketing management? Pricing: The price of the products is implies whereby manufacturers acquire a fair return for their labour and replace/ra

Explain epayments, Question 1 International banking system enables trading...

Question 1 International banking system enables trading in multiple currencies. Explain the concept and need of international banking Question 2 Define and explain capital a

What are the functions of marketing management, What are the Functions of M...

What are the Functions of Marketing Management? Functions of Marketing Management: The extensive functions of marketing management consist of the given below: a. Marke

Implement conditional formatting, a) Implement conditional formatting to sh...

a) Implement conditional formatting to show that if the total spent before VAT is £1000 or more, the cell will be highlighted in red to show that discount has been earned. b) In

Organization factors, There are certain factors which are related to th...

There are certain factors which are related to the polices traditions and environment of any enterprise. a. Labor relation policies of the organization. b. Amoun

Primary system development models, Problem 1. Identify three types of s...

Problem 1. Identify three types of systems or system upgrades that may be ideal candidates for a Waterfall Development Model strategy Identifying and explaining the three

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