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

Performance appraisal and career progression of individual, Define the perf...

Define the performance appraisal and career progression of individual. Performance Appraisal and Individual’s Career Progression: Performance appraisal assists in unearth

Risk and Return, In a report not to exceed five double-spaced typewritten p...

In a report not to exceed five double-spaced typewritten pages, analyze the results obtained from the three simulations performed, identify the source of the differences, and selec

Explain the individual and group managerial decisions, Explain the individu...

Explain the individual and group managerial decisions. Individual and Group decisions: Individual decisions are considered by a single individual into context of routine

Logical analysis of daily business, Jane Parton, the proprietor of Deli Pa...

Jane Parton, the proprietor of Deli Parton, sells specialty breads for $3.95 each.  She buys these from a baker-supplier for $2.45 per unit. Since Jane wants to maintain Deli Pa

Explains the short note of breaking business barriers, Q. Explains the shor...

Q. Explains the short note of Breaking Business Barriers? The Information Technology smashes traditional barriers to strategic business success. Computer as well as telecommuni

MISS, DISCUSS THE LAYOUT OF THE WORK SPACE TO PREVENT ACCIDENTS AND INJURIE...

DISCUSS THE LAYOUT OF THE WORK SPACE TO PREVENT ACCIDENTS AND INJURIES?

Explain with examples the types of formal communication flow, QUESTION 1 ...

QUESTION 1 Discuss the implications of intercultural communication for businesses and describe the problems faced by employees who engage in cross cultural communication. Q

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

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