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

Explain what you understand by the term subculture, QUESTION 1 (a) Desc...

QUESTION 1 (a) Describe the theory of Behaviourism and Media effect, using day to day situations as examples. (b) (i) Explain what you understand by the term subculture?

Features of enterprise resource planning, The general ERP model has a centr...

The general ERP model has a central data base shared by all functions of the enterprise represented by four quadrants in the figure represents the concept of enterprise resources p

Illustrate the definition of work measurement, Illustrate the definition of...

Illustrate the definition of work measurement? Definition of work measurement: Work measurement is described as the application of techniques designed to set up the time

Concepts and technique of management of purchasing functions, Concepts and ...

Concepts and Techniques of Management of Purchasing Function Introduction This assignment will encourage you to explore the major principles, concepts and techniques which

Describe the communication flow in organizations, QUESTION 1 (a) Descri...

QUESTION 1 (a) Describe the Five basic propositions which form the premise of Neher‘s views on organizational communication. (b) Describe the communication flow in organizat

“’Confessions of a Microfinance Heretic’: Talks at G, dear team i need to m...

dear team i need to make a case analysis of 1500 woeds on the following topic, video is also provided with the instructions from university. please contact me asap.

E-strategy, Estimate the Contribution of an E-Strategy to the Achievement o...

Estimate the Contribution of an E-Strategy to the Achievement of an Organisation''s Objectives

Describe the basic control process, Problem 1: (i) Describe the basic ...

Problem 1: (i) Describe the basic control process. (ii) Show whether control is always possible and necessary in an organization. Problem 2: (i) Using appropriate

BSBFIM501A, Hello, I have an assignment I need to complete in the next 6 we...

Hello, I have an assignment I need to complete in the next 6 weeks and want to know how your service works? It is 1 of 2 modules I require to complete my studies. Can you please a

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