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

Stakeholders, ABC Ltd.  wants to communicate about its corporate image to a...

ABC Ltd.  wants to communicate about its corporate image to all its stakeholders and also to the general public. As an advisor, how do you recommend them to do it.

What are the job affecting factors of the morale, What are the job affectin...

What are the job affecting factors of the Morale? Job affecting factors of morale: a. Nature of job, b. Boredom and Fatigue related along with the job, c. Employees

Managing public and private welfare institutions, QUESTION (a) Managing...

QUESTION (a) Managing Public and Private Welfare Institutions has assumed major importance in the modern era. Discuss this statement giving suitable examples. (b) Welfare In

Describe the basic control process, Problem 1: (i) Describe the basic ...

Problem 1: (i) Describe the basic control process. (ii) Show whether control is always possible and necessary in an organization. Problem 2: (i) Using appropriate

What are the different types of benchmarking, Problem What are the diff...

Problem What are the different types of benchmarking and explain the reasons for Benchmarking? Different types of bench marking Performance benchmarking or operationa

Discuss the possible problems that teams at trinova ltd, QUESTION Team...

QUESTION Teams are emerging as a powerful management tool also are popping up in the most unexpected places, such at TRINOVA Ltd. The organisation utilizing more than 40 teams

Explain about the participation in management of workers, Explain about the...

Explain about the participation in management of workers. Workers’ Participation in Management: Worker’s participation into management can be in any of shape, through est

Research topic, please help me choosing a desertation topic

please help me choosing a desertation topic

Discuss the essential components of a business plan, Adam's Big Leap O...

Adam's Big Leap Over the past five years or so, Adam has been working as Supervisor for King Burger and considers himself very fortunate to have landed in such a perfect job r

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