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

Case study, List some scientific decision aids that you may prescribe to im...

List some scientific decision aids that you may prescribe to improve the situation.ion

Describe the basic control process, QUESTION 1 Explain how the nature o...

QUESTION 1 Explain how the nature of a management job creates the possibility for ethical abuses. Identify common kinds of workplace behaviour and support your answer with exam

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?

How is the leadership affected in the organization, How is the Leadership a...

How is the Leadership affected in the organization? Leadership: It is the knack of getting other people to obey you and do willingly the things which you need them to do.

The use of var for capital requirement for market risk, Question 1 Identif...

Question 1 Identify and assess the different IRR measurement techniques implemented in a bank Question 2 Describe the use of VaR for capital requirement for market risk Ques

Cash deposited in banks, QUESTION Part 1 Company X is evaluating ...

QUESTION Part 1 Company X is evaluating whether each of these items is a financial instrument and whether it should be accounted for under IAS 32 (1) Cash deposited in

What is the prime aim of a good inventory control, What is the prime aim of...

What is the prime aim of a good inventory control? A good inventory control will aim to: 1. Procure material of good quality within time 2. It doesn’t to face shortage of

Short-term finance, discuss three approaches to the short-term finance prob...

discuss three approaches to the short-term finance problem and provide relevant examples for each

Managerial skills(10), what are some of the main best managerial skills

what are some of the main best managerial skills

Ethical Organisational Management, Evaluate factors which could influence o...

Evaluate factors which could influence organisational ethics.

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