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

What is morale in terms of measurement, What is Morale in terms of measurem...

What is Morale in terms of measurement? Morale: Morale is level like either high or low or a measure of extent of voluntary cooperation illustrated by an individual or a

Business process analysis, Business Process Analysis 1. Comprehensive b...

Business Process Analysis 1. Comprehensive business process analysis with suggested improvements. Must include projected quantitative results. Report must include use of analyt

Explain the importance of conducting business meetings, Question 1: (a)...

Question 1: (a) In most business organisations, communication will flow: 1. Upwards 2. Downwards 3. Horizontally Briefly describe each of the above communication flows.

International Business, What measures can be utilized to control subsidiari...

What measures can be utilized to control subsidiaries that are less than 100 percent owned by the firm or joint venture partners in which the firm has no ownership?

Business law today, Might any privacy issues arise as an online company cre...

Might any privacy issues arise as an online company creates a database for generalized marketing campaigns? Explain your answer.”

Adequate inventory records, An efficient inventory control necessitates ...

An efficient inventory control necessitates maintenance of proper inventory records because various inventory records contain information to meet the needs of purcha

Discuss the essential components of a business plan, Adam's Big Leap O...

Adam's Big Leap Over the past five years or so, Adam has been working as Supervisor for King Burger and considers himself very fortunate to have landed in such a perfect job r

What do you mean by performance appraisal, What do you mean by Performance ...

What do you mean by Performance Appraisal? Performance Appraisal: This appraisal is an impartial and systematic assessment of an employee’s performance onto the job, alon

Explain effective decision making, Question 1: (a) List three types of ...

Question 1: (a) List three types of supervision styles. (b) Describe each of them, stressing upon their importance to you as supervisors. (c) Write short notes on two maj

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