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

Other bearing materials, Other Bearing Materials An extensively hard w...

Other Bearing Materials An extensively hard wood of great density, termed as lignum vitae, has been employed for bearing applications. Along with water as cooling and lubrican

Estimate what fraction of heat loss by the fin, A tube assembly constructed...

A tube assembly constructed of Cu with an inside diameter of 1.25 cm, wall thickness of 0.8 mm and circumferential fins around the periphery. The fins have thickness of 3 mm, and a

Borides, Borides Borides of Mo, W, Cr, Ti and Zr find extensive indust...

Borides Borides of Mo, W, Cr, Ti and Zr find extensive industrial application. They exhibit extremely high hardness, melting point from 1800 to 3000 o C and good chemical resi

Air transportation, AIR TRANSPORTATION: Air transportation has grown r...

AIR TRANSPORTATION: Air transportation has grown rapidly all over the world and in India too. Its main advantages are speed, good safety record, military use, ability to serve

Internal energy - thermodynamics, Internal Energy (U): It is the energ...

Internal Energy (U): It is the energy possessed by the system on account of its configurations, and motion of atoms and molecules. Not like potential energy and kinetic energy

Find out the maximum deflection in beam, Find out the maximum deflection in...

Find out the maximum deflection in beam: A beam of span 8m is loaded with UDL of 10 kN/m over the middle half portion. Discover the maximum deflection. EI is constant. Sol

Example of process capability, Example of Process Capability The speci...

Example of Process Capability The specifications for one characteristic of a part call for its width to be 3.000 + 0.008 centimetres. The procedure has been run under controll

Reciprocating compressor, Derive the relation ship between volumetric effic...

Derive the relation ship between volumetric efficiency & clearance.

Heat faster steel copper or brass, Which conducts heat faster steel copper ...

Which conducts heat faster steel copper or brass? Ans) Copper conducts heat faster than steel or brass. Any material that is good for conducting heat is also good for electricit

Determine a least square geometric curve, Determine a least square geometri...

Determine a least square geometric curve y = ax b to the following data : x:  1   2  3   4   5 y: 0.5  2 4.5 8 12.5 Fit a straight line y = a + bx to the following data b

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