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

Lock-in, Lock-in, as explain by Hax and Wilde, is achieved when?           ...

Lock-in, as explain by Hax and Wilde, is achieved when?                Ans) An company achieves a proprietary position in its business.

Enterprise resource planning cost benefit analysis, As CEO of SeaSpray Mari...

As CEO of SeaSpray Marine, Ron Greenwood knows it is important to control costs and to Respond quickly to changes in the highly competitive boat-building industry. When IDG Consult

Explain about the theory ''x'' in human relations, Explain about the Theory...

Explain about the Theory ‘X’ in human relations. Theory ‘X': It is essentially a negative approach to human relations wherein a supervisor presumes exact the assumptions

List the several ergonomic risk factors, Question 1: (a) What do you me...

Question 1: (a) What do you meant by of the term ‘safety'? (b) Dsecribe clearly the meaning of industrial accidents. (c) Explain the elements which should be taken into c

Organizational climate and organizational culture, QUESTION 1 a) Differ...

QUESTION 1 a) Differentiate clearly the concepts "Organizational Climate" and "Organizational Culture". b) Organizations make use of two different approaches for managing or

Improve business processes, Discuss why has direct marketing continued to g...

Discuss why has direct marketing continued to grow? Using Internet technology to improve business processes • Discuss how this technology can unlock new business opportunities •

Managing Knowledge, Discuss what kind of organisational culture promotes or...

Discuss what kind of organisational culture promotes organisational learning.

Perform the transformation, The activities of this last phase are: 1. D...

The activities of this last phase are: 1. Develop a migration strategy, 2. Create a migration action plan, 3. Develop metric for measuring performance during implement

Explain different kinds of managers within an organisation, Question 1: ...

Question 1: ‘Planning is a means to an end, a method used to position an organisation, through prioritising its use of resources according to identified goals.' Show the ad

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