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

Describe crank-pin effort, Describe the following terms:- a) Gyroscope ...

Describe the following terms:- a) Gyroscope b) Crank-pin effort c) Piston Effort d) Crank effort e) Thrust on crank shaft bearings.  f) Brake and Dynamometer g

Aspects of scheduling , Aspects Of Scheduling  The difficulty is a mod...

Aspects Of Scheduling  The difficulty is a modification of a flexible manufacturing cell at ABB's plant for the manufacturing of turbocharger in Baden, Switzerland. The difficu

What is vertical spoilers, Q. What is Vertical Spoilers? Vertical Spoil...

Q. What is Vertical Spoilers? Vertical Spoilers - Use a three-start system of short vertical spoilers arranged in a helical pattern on the top third of the vessel. The exposed

Probability, Airlines like to overbook their flights (this is a vibrant are...

Airlines like to overbook their flights (this is a vibrant area of research called yield management). It is estimated that 10% of the people who book their flight do not show up. H

Concentrated or point load on beam, Concentrate d or Point Load: Ho...

Concentrate d or Point Load: How many types of load are acting on the beam? A beam is usually horizontal and the loads acting on beams are usually vertical. The followi

Find out the centroid of the shaded area, Find out the centroid of the shad...

Find out the centroid of the shaded : Find out the centroid of the shaded area shown in Figure Solution Net area of shaded portion of Figure = The area of full

Composites , For an automotive component of your choice that is traditional...

For an automotive component of your choice that is traditionally metallic, review how it could be re-engineered as a composite? How factors such as fibre & matrix type, fibre volum

Explain the manufacturing process, MANUFACTURING PROCESS A manufacturin...

MANUFACTURING PROCESS A manufacturing process is the activity (or a combination of activities) of transforming a given material into a product of different forms and sizes and

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