Two bin techniques, Business Management

Assignment Help:

Two Bin Techniques : One of the oldest systems of inventory control is the two bin system, which is mainly adopted to control C group inventories. In the two bin system stock of each item is separated into two bins. One bin contains stock just enough to last from the date a new order is placed until it is received in inventory. The other bin contains a quantity of stock is enough to satisfy probable demand during the period of replenishment. To start with the stock is issued from the first bin. When the first bin is empty, an order for replenishment is placed and the stock in the second bin is utilized the ordered material is received.

Such a method is appropriate to ideal conditions in which the rate of consumption is fairly constant and for items the lead time of which is fairly established and regular.

Although the systems itself possesses a high degree of automacy, in practice we need to allow for variations in the rate of consumption as well as lead time. However for such a system the most desirable quantity to re order is the EOQ. Since the quantity to re order is fixed in advance it action of replenishment action can be delegated to the lower level staff and there i s need to take physical count of inventory also.

A possible disadvantage of the system is the requirement of additional storage facilities and perhaps some practical difficulty in keeping the two stocks properly separated.


Related Discussions:- Two bin techniques

Discuss the functions of a theory in communication, QUESTION 1 What acc...

QUESTION 1 What according to you are the essentials of effective communication? QUESTION 2 List out and discuss the various factors that affect communication. QUEST

Write a note on classification of business objectives, Q. Write a note on c...

Q. Write a note on classification of business objectives? 1) Economic Objectives - Functions of customer Segment - Innovations - Optimum use of resources 2) Social Objectives -

Starting a new business, Q. Starting a new business? Starting a new bus...

Q. Starting a new business? Starting a new business is always tough. We have generated versatile ideas on variety of this product, looked towards the feasibility of our ideas,

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

introduction to business, The Four Seasons Corporation The Four Seasons ...

The Four Seasons Corporation The Four Seasons Corporation is a new firm to the market that is established recently. Since the garment industry is growing in a pace rate worldwide

Weaknesses of eoq formula, Weaknesses of EOQ Formula 1. Erratic Usa...

Weaknesses of EOQ Formula 1. Erratic Usages : The formula we have used assume that the usage of materials is both predictable and evenly distributed. When this is not t

Concept of rational decision-making process, Question: According to Rob...

Question: According to Robbins (2010), decision-making is the essence of the manager's work. Managers are involved in both short term and long term decision-making. Good decisi

Objectives of preventive maintenance, a. To minimize the possibility of ...

a. To minimize the possibility of unanticipated production interruptions by locating or uncovering any condition which may lead to it? b. To make plant equipment and m

Fundamental budgets essential for manufacturing budget, What fundamental bu...

What fundamental budgets are essential for manufacturing budget? Manufacturing budget requires the given fundamental budgets or estimates to meet the plans as follows: 1. Pr

Is performance management beneficial to the organisation, Question 1: P...

Question 1: Performance management is beneficial to the organisation only. Explain? Question 2: Many organisations get a lot of resistance from employees when they try

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