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

Radiographic examination of welded joints, Q. Radiographic examination of w...

Q. Radiographic examination of welded joints? Radiographic examination (RT) of welded joints shall be performed as required by the Code. Acceptance criteria shall be in accord

Coagulation-flocculation-sedimentation, 2. Assume that the river has been s...

2. Assume that the river has been selected as the source of raw water for the 2.0mgd demand. a. Surface water has low alkalinity, high turbidity. The distribution system is cast

Illustrate the babcock and wilcox boiler, How the boiler are classified? Sk...

How the boiler are classified? Sketch and define the babcock & Wilcox boiler and also Compare the water tube boiler and fire tube?

Calculate the length of plastic deformation, Calculate the length of plasti...

Calculate the length of plastic deformation: Calculate the length of plastic deformation along 45 o in case the applied stress σ is 63.25% of yield stress in the plate of abo

Heat pump - thermodynamics, Heat Pump - thermodynamics: Heat Pump: H...

Heat Pump - thermodynamics: Heat Pump: Heat pump is reversed heat engine that removes heat from a body at low temperature and transfer heat to the body at higher temperature

Steam, what is dry ness fraction?

what is dry ness fraction?

Calculate the power of the engine, A Torsion dynamometer is used in a prope...

A Torsion dynamometer is used in a propeller shaft of a marine Engine. It is found that the shaft twists 2 o in a length of 20 meters at 120 r.p.m. If the shaft is hollow with 300

Description of various sections and terminologies spark plug, Description a...

Description about Various Sections and Terminologies of Spark Plug Stud This is fixed to the insulator. The high-tension cord is also connected to this. Corrugations

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