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

OPERATING CYCLE, DISCUSS THE APPLICABILITY OF OPERATING CYCLE IN VEGETABLE ...

DISCUSS THE APPLICABILITY OF OPERATING CYCLE IN VEGETABLE GROWING BUSINESS

What is line balancing, What is Line Balancing? Explain briefly. Line...

What is Line Balancing? Explain briefly. Line Balancing: It means balancing the line among the product lines or assembly lines. This aims at grouping facilities and work

How is advertising affected in marketing management, How is advertising aff...

How is advertising affected in marketing management? Advertising: This is a commercial message to the public, implementation to inform potential and established consumers

Organization behavior, Describe the three stages of change. Why is it criti...

Describe the three stages of change. Why is it critical that each stage be fully implemented before moving to the next? Provide concrete, detailed examples and explain how each fit

Sales territory management, Sales Territory Management: To be efficien...

Sales Territory Management: To be efficient and effective the outside sales staff requires to be well managed and focused in their daily activities. The way they direct their

What types of problems are solved by breakeven analysis, What types of prob...

What types of problems are solved by breakeven analysis? Breakeven Analysis assists solving the given types of problems as follows: 1. What volume of sales will be essentia

Developing plans for areas of responsibility, Work Breakdown Structures (WB...

Work Breakdown Structures (WBS) - explain the value, role and use of the WBS methodology in project management. Planning within organizations takes place at strategic, tactical

Nature of controlling, explain the points of nature of controlling? explain...

explain the points of nature of controlling? explain the objectives of controlling?what is resistance to control?explain the approaches to goal formulation?explain the steps of pla

Assignment, “Imagine yourself in a situation of being encouraged to inflate...

“Imagine yourself in a situation of being encouraged to inflate your expense account. Do you think your choice would be most affected by your individual moral development or by the

Opinion of the difficulty, Normal 0 false false false E...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Venkat starred the m

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