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

Fiscal and monetary policy , a) Describe how economic systems attempt to al...

a) Describe how economic systems attempt to allocate resources effectively b) Assess the impact of fiscal and monetary policy on business organisations and their Activities c)

Distinctive complementary systems of action, Question 1: Leadership and...

Question 1: Leadership and management are two distinctive complementary systems of action. Both are necessary for the success in an increasingly complex and volatile business e

Explain how far money is the main motivating factor at work, QUESTION 1 ...

QUESTION 1 According to the instrumentality theory of motivation, money is the main motivating factor at work. This can explain the existence of performance related pay in many

Assigment, How will you influence people to strive willingly for group obje...

How will you influence people to strive willingly for group objectives in your organization (target bases industry)? apply your interpesonal influence throught communication proces

Left or Right, if you were one of the other foremen, what could you do to m...

if you were one of the other foremen, what could you do to make rajinder?s transition easier?

Firm and its environment, what is firm and its environment of organization ...

what is firm and its environment of organization and management?

USA Civil Law versus Criminal Law, What is the difference between Criminal ...

What is the difference between Criminal and Civil Law? Provide a real-world example of a dispute that would classified as civil law and one that could be classified as criminal la

Write a letter of resignation, QUESTION If you were to write a letter...

QUESTION If you were to write a letter of resignation, which of the following introductory paragraphs would be the most suitable. A ) I have accepted another post. I am s

BUSINESS LAW, NAME FOUR CATEGORIES OF ASCERTAINED GOODS

NAME FOUR CATEGORIES OF ASCERTAINED GOODS

Evaluate the importance of business processes , Evaluate the importance of ...

Evaluate the importance of business processes in delivering outcomes based upon business goals and objectives.   1)     How would you classify the GE culture in terms of the

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