Two bin techniques, Business Management

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.

Posted Date: 3/1/2013 3:19:01 AM | Location : United States







Related Discussions:- Two bin techniques, Assignment Help, Ask Question on Two bin techniques, Get Answer, Expert's Help, Two bin techniques Discussions

Write discussion on Two bin techniques
Your posts are moderated
Related Questions
QUESTION 1 As the Human Resources manager of an organization of your choice, discuss how Maslow's theory of human motivation and the goal theory can be applied for managing peo

QUESTION 1 Being able to deliver a stunning presentation has become increasingly important in the development of a successful managerial career. Based on your own experience

Advantage of North West Corner Method: a. This methods is very effective as it provide step by step solution. b. It is very simple to obtain optimum solution through this

Question 1 Explain the following security attacks                     a) IP Spoofing                     b) Denial of Service Attack Question 2 Explain the limitations and weakn

Also known as the loading cost or the storage cost carrying cost represents the cost that is associated with storing an item in inventory. It is proportional to the amoun

This semester-long project provides an opportunity to demonstrate your business research skills, your financial acumen, and your understanding of how different business models, str

Q. What do you mean by casual labour and what are the rules for their recruitment and benefits admissible to them after they attain temporary status. Write short notes on casual

Distinguish between business function and business process

Orchestration: The control over the web services that are involved and coordinating the implementation of different operations on the web services involved in the operation is t

Differentiate between OLTP and OLPP