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

Applications, applications of dynamically induced emf

applications of dynamically induced emf

Materials used in insulation, Q. Materials used in insulation? All mate...

Q. Materials used in insulation? All materials must be non-corrosive, compatible with other materials and used in accordance with the Manufacturer's recommendations. All mat

Dimension commands-autocad, Dimension Commands: For example, the illust...

Dimension Commands: For example, the illustration above shows two different dimension styles. The one on the left is the default style known as STANDARD. If you do not create a

What are the safety checks in under batteries and gear, What are the Safety...

What are the Safety consideration in under batteries and gear ? Ans: Alternator:- 1. Suspension pin with cotter pin and anti- rotation plate 2. Alternator safety cha

Globular transfer, Globular Transfer Globular transfer  is characterise...

Globular Transfer Globular transfer  is characterised by a drop size of greater diameter than that of the electrode wire. The large drop is easily acted on by gravity, generall

Maintenance operations, Maintenance Operations: The maintenance opera...

Maintenance Operations: The maintenance operations cover various activities such as: (a) making good rain cuts in embankment, (b) clearing the side ditches of vegetatio

Welding, Differentiate between porosity & blowholes in welding

Differentiate between porosity & blowholes in welding

Solve the equations by factorization method, a) Answer the following equati...

a) Answer the following equations by Factorization method 10x+y+z =12 ; 2x+10y+z =13 ; 2x+2y+10z=14 b) Apply Gauss-Seidal Iteration method to solve the equations 20x+y-2z

Calculate the normal force, Problem You are playing tetherball because ...

Problem You are playing tetherball because you are seven years old and you have nothing better to do.  If the tetherball has a mass of 1 kg and the rope is 1.5 m long and can w

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