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 video-conferencing and what are its requirements, QUESTION An a...

QUESTION An area where telecommunication is gaining ground among businesses and academics is video-conferencing. However Video-Phone systems have existed for years, but have no

Write short notes on risk management, Question 1 What is Flexible Manufact...

Question 1 What is Flexible Manufacturing System (FMS)? How does it help in improving the manufacturing process? Question 2 What is Logical Process Modelling and give the com

Define the term quality control in management, Define the term Quality Cont...

Define the term Quality Control in management. Quality Control: Control is a system for checking and measuring (inspecting) a phenomenon. This suggests while to inspect,

What are the main modes of speech delivery, QUESTION 1 (a) What difficu...

QUESTION 1 (a) What difficulties can be encountered in interpreting nonverbal communication? (b) What are the various nonverbal codes characterising nonverbal communication?

What is the grievances handling, What is the Grievances Handling? Gri...

What is the Grievances Handling? Grievances Handling: Individual workers usually have several complaints called grievances in opposition to the working rules of the busin

Explain the various types of networks, Question 1 Explain the various fact...

Question 1 Explain the various factors affecting the use of IT applications in the retail industry? Question 2 What is the impact of e-retailing in the travel and tourism

What are the functions of lower management, What are the functions of lower...

What are the functions of lower management? Lower Management: This includes Foremen, Office superintendent, Supervision or charge-hands and Inspectors and many more. L

Problem based on olympic games 2012, Olympic Games 2012 a) Revenue ex...

Olympic Games 2012 a) Revenue expenditure is spending on the daily running of a business, such as materials and wages used in the preparation for the 2012 Olympic Games. Ca

Competitive strategies for information system, Q. Competitive strategies fo...

Q. Competitive strategies for Information system? Business is capable to develop competitive strategies to counter the action of the competitive forces they confront the market

BSBADM405 Organise Meetings, Set up a WHS Consultative Committee and Conduc...

Set up a WHS Consultative Committee and Conduct Meetings

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