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

Sks7000 marketing flyer, How can your answer be free of plagiarism what ass...

How can your answer be free of plagiarism what assurance will you give me that another person from the same school will not order for the same material

Describe carefully the elements which contribute to attitude, QUESTION ...

QUESTION Personal attitudes can have a key bearing on how individuals function within organizations. Attitudes may reflect in either positive or negative behaviours. A number o

Push factors in diversity, The 1990s saw the development of a new trend in ...

The 1990s saw the development of a new trend in the form of workforce diversity mainly because of the liberalisation and globalisation of markets (Henry and Evans, 2007). As the bu

What are the human relations of a successful manager, What are the human re...

What are the human relations of a successful manager? Human Relations skill: Human Relations skill considers as the capability to work effectively along with others and b

Mgmt2023, A company is considering whether to purchase a piece of land that...

A company is considering whether to purchase a piece of land that has come up for sale at a cost of $10 million. Two suggestions have been made for the use of the land. One is to

Marketing, what''s the fram works of a marketing plan

what''s the fram works of a marketing plan

Evaluate the business performance, a) Based on the data for the years 1997,...

a) Based on the data for the years 1997, 1998, 1999, evaluate the business performance of Baxton Technology.  Given this review what i) unit sales ii)  $ sales iii) $ cont

Define the scope of total quality management in brief, Define the scope of ...

Define the scope of total quality management in brief. Scope of TQM: Total Quality Management is a system approach to quality within all spheres of organisation. It impli

OB, OB case study

OB case study

Healthcare, Post a short list of your personal vision, mission, values, and...

Post a short list of your personal vision, mission, values, and ethics, social accountability, and stewardship values related to the health care field you are in or will be enterin

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