Minimum maximum technique , Business Management

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.

Posted Date: 3/1/2013 3:18:23 AM | Location : United States







Related Discussions:- Minimum maximum technique , Assignment Help, Ask Question on Minimum maximum technique , Get Answer, Expert's Help, Minimum maximum technique Discussions

Write discussion on Minimum maximum technique
Your posts are moderated
Related Questions
What are the important terms of the 1948s factories act? Important Terms of the Act: (1) Factory: A place wherein ten or more persons are working and in which a manufact

QUESTION 1 a) How can an understanding of the team roles as developed by Meredith Belbin help a manager in communicating effectively with his/her team? b) Discuss the major

outline benefits of organizational goals?

Question 1 Explain the various principles of an ideal merchandising giving suitable examples for each? Question 2 Enumerate the category management strategies that are use

QUESTION 1 (a) What is meant by controlling? Why is it needed in organisations? (b) Discuss the different steps in the process of control. What are the essential requirement

OUR AIM IS TO BRING INNOVATION BY ADOPTING FOLLOWING STRATEGIES. - Competitive strategy: want to adopt competitive business strategy; we will attempt a sustainable competitive

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


The system analyst must understand the existing problems and strengths and weaknesses of the existing system. Other activities comprise identifying the overall implications and ben

Satine Enterprise Ltd. a) Reducing balance method: Year Depreciation Net Book Value 0 0 $25,000