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

How is production budget determined, How is production budget determined? ...

How is production budget determined? A production budget determines the cost of producing the calculated volume of saleble products. The production plan is computed in terms of

ERP, Distinguish between business function and business process

Distinguish between business function and business process

Strong culture, How can a leader or fonder help create a strong culture in ...

How can a leader or fonder help create a strong culture in an organization? Can any founder create a culture? Explain.

How should handled a good grievances, How should handled a good grievances?...

How should handled a good grievances? A good grievances handling must: a. It must be simple, easy to know and to operate b. It must settle grievances at lower level c.

Briefly describe the concept of sustainable development, Question: a) ...

Question: a) Briefly describe the concept of sustainable development. b) Briefly discuss the mandate of the Environment coordination committee set up under the Environment

Benefits of tqm, 1. Advantages Unique to TQM a. It makes company a lea...

1. Advantages Unique to TQM a. It makes company a leader not follower. b. TQM creates goal directed connection between customers management and workers. Every on

What is all about sales?, Sales is about generating prospects, evaluating t...

Sales is about generating prospects, evaluating them for business opportunities, getting the requirement from them and giving adequate solutions so that it gets changed into Revenu

the fundamental considerations, a) Explain leadership styles to fit cultur...

a) Explain leadership styles to fit cultural differences and effectively operate in global markets. b) Explain the principal theories of leadership and motivation, and Explain t

The Norton Case Study, Read the following case study: The Norton Company Ve...

Read the following case study: The Norton Company Versus 3M 2.Use examples from your readings, and when possible, current events, and personal experience to support your answers t

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