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

Provide an outline of the balanced scorecard method, A) The future usefulne...

A) The future usefulness of any Performance Management initiative in an organization is underpinned by the determination of Key Performance Indicators (KPI). Provide a brief outlin

Gpss simulation model , The sales counter next to the soft toy display in S...

The sales counter next to the soft toy display in Shambles receives a customer every 2-4 minutes.  Most of these customers (80%) are buying toys and are dealt with by the cashier i

What are the important provisions for employee health, What are the importa...

What are the important provisions for employee health? Important provisions of Factory Act, 1948 about health: The given are the significant provisions for employee

Project for flower shop business plan, if can make in 6 hours Perso...

if can make in 6 hours Personal Business Plan . The plan should have the following elements: Executive Summary Products and Services Market Analysis Summary - Ma

Discuss brainstorming is a technique that can be utilized, QUESTION 1 ...

QUESTION 1 The process of delivering a presentation is a systematic one that involves thorough planning along with preparation and one of the main phases is developing the pre

Explain how a manager can motivate employees, Question 1: (a) Explain t...

Question 1: (a) Explain the control process. (b) Discuss the importance of control for managers to improve business performance. Question 2: Using Herzberg's theory

What is always better control analysis of inventory control, What is the Al...

What is the Always Better Control Analysis of Inventory Control? ABC Analysis of Inventory Control: Always Better Control Analysis of Inventory Control analysis is the ex

BUSINESS PLAN, what questions will you expect from investors and what are t...

what questions will you expect from investors and what are the possible answers?

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