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

Lean mixture -mixture requirement , Lean Mixture: It generally ranges...

Lean Mixture: It generally ranges from approximately 15 : 1 to 17 : 1. By the use of this fuel, engine runs for higher economy.

Explain the gauge pressure, Explain Gauge Pressure (P gauge ) Gauge Pre...

Explain Gauge Pressure (P gauge ) Gauge Pressure is the pressure of a fluid contained in a closed vessel. It is all time more than atmospheric pressure. It is calculated by an

Bending equation, State and define the bending equation and mention it''s u...

State and define the bending equation and mention it''s units and derive it

Different laws of perfect gas, (a) What is an ideal gas ? How does it diffe...

(a) What is an ideal gas ? How does it differ from perfect gas ? Write the different laws of perfect gas. (b) The pressure in a car tyre was checked at 15 o C temp. and reading

Determine a static feedforward controller, By operation of the distillation...

By operation of the distillation columns you are often interested to maintain output despite fluctuations in the composition, ex. feed composition and feed flow. One possible actua

Evaluate the shaft diameter on strength basis, The layout of a transmission...

The layout of a transmission shaft carrying two pulley C and B and supported on bearings A and D is shown in figure. Power is supplied to the shaft by means of vertical belt on pul

Construction of steam turbine , Construction of steam turbine : CONST...

Construction of steam turbine : CONSTRUCTIO N DETAILS: 1 . Casing: It is made out of cast steel. The casing has rotor inside it. 2 .  Rotor: It carries blades o

CO2 welding-equipment, CO 2 WELDING CO 2 welding is one of the variat...

CO 2 WELDING CO 2 welding is one of the variations of t he GMAW (Gas Met al Arc Welding) process which is now used for welding most structural and alloy steels. The operating

Derivation, how to find the equation for deflection of a cantilever beam su...

how to find the equation for deflection of a cantilever beam subjected to udl in terms of Airy''''s stress function

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