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

Advantage of electro chemical machining, Advantage of Electro Chemical Mach...

Advantage of Electro Chemical Machining 1. As the tool does not come in contact with the work there for tool wear is practically nil. 2. The metal removal is faster rate.

Brittle fracture, Dear Sir I would to know what is the min. time required...

Dear Sir I would to know what is the min. time required for carbon steel tube A214 @ zero C to 50 C

He- ne laser, constructing and working of he- ne laser

constructing and working of he- ne laser

Converying system, impact force equation of ship to jetty?

impact force equation of ship to jetty?

Write the functional element of instrument system, a) Mention typical appli...

a) Mention typical application of instrument system with illustratation. b) Write down about the functional element of instrument system with examples. c) Define the key term

Scrapper -tool and equipment , Scrapper: Scrappers are used to scrap gaske...

Scrapper: Scrappers are used to scrap gasket or other such materials from flat or irregular surface. Scrappers of several sizes are shown in Figure. Figure : Scrapper

Steps for solving problem for finding maximum power, Step s for Solving Pr...

Step s for Solving Problem for Finding Maximum Power: 1. Use formula stress (σ) = force (Maximum Tension)/Area Where;  Area = b.t that is, T max = σ.b.t 2. Unit mass (

Illustrate all the laws of mechanics, (a) Illustrate all the laws of mechan...

(a) Illustrate all the laws of mechanics? (b) What ate the two limits of limitation on Newtonian mechanic?

Cold service insulation on pipe, Q. Cold service insulation on pipe? Fa...

Q. Cold service insulation on pipe? Factory fabricated sectional pipe insulation shall be applied in staggered joint construction. On multiple layer construction, all joints sh

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