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

What are the demerits and merits of sliding mesh gear box, (a ) What are th...

(a ) What are the demerits and merits of sliding mesh gear box? (b) Show a four speed gear box, including reverse speed for a passenger car and illustrate how the speed ratio is

.fluid mechanics., to find a horizontal force acting on a body which is inc...

to find a horizontal force acting on a body which is inclined to the plane with a particular angle

Tensile and compressive force - mechanics, Tensile and Compressive Force: ...

Tensile and Compressive Force: T ensil e Forces A force, that pulls the body, is called as tensile force. Here member AB is tension member carrying tensile force P. As

Determine magnitude and direction of the resultant force, Determine magnitu...

Determine magnitude and direction of the resultant force: A system of forces is acting at the corner of a rectangular block as shown in the figure. Determine magnitude and di

Explain numerical control (n.c) procedure, Explain Numerical Control (N.C) ...

Explain Numerical Control (N.C) Procedure a) Process Planning: - This is listing of the sequence of operation to be performed during manufacturing of a part. This as well lists

Predict the output of load - curved beam theory, A load cell based on a "pr...

A load cell based on a "proving ring" is shown below.  The circular portion of the load cell has an inner radius of 1.25 in and outer radius of 1.50 in.  The ring has a depth (i.e.

Show experimental verification of time dilation, Q. Show Experimental Verif...

Q. Show Experimental Verification of time Dilation ? Time dilation is a real effect, it can be verified by making this experiment. (Are created at high attitudes in the earth a

Diploma.., Explain the point of contraflexure?

Explain the point of contraflexure?

Building a fermenter for a new product, The first stage of design assumes: ...

The first stage of design assumes: budget is approved, marketing research is complete, product can be made at a price below that which it can be sold, research and development is c

Fluid mechanics, A cart is moving along a track at a constant velocity of 5...

A cart is moving along a track at a constant velocity of 5 m/s as shown. Water (? = 1000 kg/m3) issues from a nozzle at 10 m/s and is deflected through 180° by a vane on the cart.

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