Two Bin System.

Q24. Write short notes on Two Bin System of material control.
Ans. In such technique, each bin is divided into two parts viz. one big and other small. In smaller portion quantity equal to minimum level or reorder level is kept and other part contains remaining quantity. Issue is made for big portion and smaller portion is used, fresh order is made. The main objective of such system is to maintain minimum quantity in stock at all time so there is no interruption in production and timing of fresh order for purchase of materials can be known easily.

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