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
QUESTION You have been asked to accept an international assignment that involves working in Nigeria for 2 years. Following the general trend, your employer will not provide a p


Industry Analysis and Organizational Strategic Plan This project is an individually-prepared strategic analysis with recommendations for a publicly-held corporation selected fro

What are the functions of lower management? Lower Management: This includes Foremen, Office superintendent, Supervision or charge-hands and Inspectors and many more. L

QUESTION 1 (a) Businesses are increasingly exposed to scrutiny and criticisms. Discuss four strategies which can be adopted by businesses to respond to these criticisms (b)

Explain the reasons why management might choose a direct approach to a system changeover in preference to other alternatives (such as phased, parallel running or pilot schemes).

Cutting Area Capacity - Glass Company What if cutting area capacity is increased? ince this process starts the whole production process it makes one think what if i start

On the 10 th of March 2009 Moot enterprise Ltd posted an offer to sell 1,000 set of encyclopedias to the Ministry of Education for the price of Rs 1,000,000 and that the offer wou

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

Question: (a) Define the term sustainable development (b) What is environmental sustainability (c) What are the different steps involved in the development of an EIA for