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

Linear Programming, This is a chance to perhaps incorporate some of your ex...

This is a chance to perhaps incorporate some of your experience, interests, and career business/management goals and ambitions within the context of an individual project paper. I

Strategic planning, discuss the importance of strategic planning to a Zimba...

discuss the importance of strategic planning to a Zimbabwean manager

Effective use of interpersonal communication skills, QUESTION "There is...

QUESTION "There is a growing emphasis on the importance of interpersonal communication. This arises from the realization that the greatest challenges to management are not prob

Levels of the organisation, QUESTION You are required to advise the man...

QUESTION You are required to advise the management of UTM Ltd about the different types of information systems that it might require at the various levels of the organisation.

Budget, Define master budget

Define master budget

What is corporate social responsibility, QUESTION Corporate Social Resp...

QUESTION Corporate Social Responsibility (CSR) is generally used to describe business's efforts to achieve sustainable outcomes by committing to good business practices and sta

Describe the term e-procurement, (i) Compare the categories of electronic c...

(i) Compare the categories of electronic commerce and explain how e-commerce is changing consumer retailing and business to business transactions. (ii) Describe the term ‘e-pro

Strengths and weaknesses of the existing system, The system analyst must un...

The system analyst must understand the existing problems and strengths and weaknesses of the existing system. Other activities comprise identifying the overall implications and ben

Hnd, Judge how the business and cultural environments shape the behavior of...

Judge how the business and cultural environments shape the behavior of a selected organisation?

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