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

Thermodynamics, describe equivalence of kelvin planck and clausious stateme...

describe equivalence of kelvin planck and clausious statement

Give a working design for motor - belt system, you are to produce a working...

you are to produce a working design for the fan, motor, belt system. You are to produce an assembly model and other such drawings as are necessary to explain your design together w

Stress analysis, Figure shows rough sketch of a selected representative cri...

Figure shows rough sketch of a selected representative critical part of a "Quick Coupler" (of an earth moving equipment) made with cast steel.  You need to perform FEA analysis to

Calculate the significant figure, Do not round intermediate calculations, h...

Do not round intermediate calculations, however for display purposes report intermediate steps rounded to four significant figures. Give your final answer(s) to three significant f

Illustrate various kinds of control systems, Illustrate various kinds of co...

Illustrate various kinds of control systems. Illustrate several block diagram reduction rules with examples. Determine C/R by using block diagram reduction method.

Chemistry, What is carbonation.? Discuss its stability s mathod of formatio...

What is carbonation.? Discuss its stability s mathod of formation

Bending stress, What is bending stress? The bending moment at section t...

What is bending stress? The bending moment at section tends to bend or deflect beam and internal stresses resist its bending. The process of bending stops when the cross sectio

Determine the horizontal component of the force, Determine the horizontal c...

Determine the horizontal component of the force: A force of 80 N is working on a bolt as illustrated in Figure. Determine the horizontal and vertical components of the force.

HEAT LOSS, HEAT LOSS IN CYLINDRICAL PIPE,PHYSICS

HEAT LOSS IN CYLINDRICAL PIPE,PHYSICS

Interesting history of iges, Interesting history of IGES: In the year ...

Interesting history of IGES: In the year of 1979, events took place that catalyzed the CAD vendor and user community to make the first national standard for CAD data exchange.

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