Economic order quantity, Mechanical Engineering

Assignment Help:

Economic Order Quantity:

Assume an economic order quantity case where annual demand D = 500 units, economic order quantity Q = 100 units, the wanted probability of not stocking out P = 0.95, the standard deviation of demand during lead time σ L = 20 units, and Lead time L = 12 days. Discover the reorder point. Suppose that demand is over a 250 = workday year.

Solution

d' in above example is

 d = 500 /250 = 2   and lead time is 12 days.

 From the equation,

R = d'L + z σL  = 2 (12) + z (20)

Since, in this case z is 1.64. Substituting this value of z, we achieved

R = 2 (12) + 1.64 (20) = 24 + 32.8 = 56.8 units

This illustrated that when the stock on hand gets down to 56 units, order 100 more.


Related Discussions:- Economic order quantity

Wire feeding unit-co2 welding, WIRE FEEDING UNIT The wire electrodes ar...

WIRE FEEDING UNIT The wire electrodes are supplied as continues coils in wire spools. The solid wires are available in the following sizes 0.8, 1.0, 1.2, 1.6, 2.0 and 2.4 mm di

Factor of safety - working stress, Factor of Safety: Factor of saf...

Factor of Safety: Factor of safety is number used to determine working stress. It is fixed based on experimental works on material. It accounts all uncertainties like, mate

Explain assembly processes, Assembly Processes The assembly process f...

Assembly Processes The assembly process for machines and mechanisms is the part of the manufacturing process concerned with the consecutive joining of the finished parts into

Evaluate boiler efficiency, The following data were obtained in a boiler tr...

The following data were obtained in a boiler trail: Mass and temperature of feed water: 680 kg/hr and 20 0 C, Steam temperature and its pressure : 15bar and 300 0 C, Coal used

Transformer for flash butt welding, Transformer for flash butt welding ...

Transformer for flash butt welding The transformer required for flash butt welding is similar to that needed for other resistance welding processes. Here, the transformer is to

Describe direct extrusion, Q. Describe Direct extrusion? • Direct extru...

Q. Describe Direct extrusion? • Direct extrusion, also known as forward extrusion, is the most common extrusion process. • It works by placing the billet in a heavy walle

Explain the hydrostatic sensor paver machine, Explain the Hydrostatic senso...

Explain the Hydrostatic sensor paver machine Machine Name: - Hydrostatic sensor paver machine   We give Mechanical Paver and Mechanical Screed, which are used for laying w

Resistor-fundamentals of electricity , Resistor: The wire that oppose...

Resistor: The wire that opposes (resists) the flow of current through it by virtue of its property is called resistor. This property is known as resistance. The resistance is

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