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

Flight of the bumblebee, Flight of the Bumblebee Railroad train T a le...

Flight of the Bumblebee Railroad train T a leaves station A at a uniform speed of 30mph toward station B. Train Tb leaves station B at a uniform speed of 20mph toward station

Manual engineering drawing , Manual Engineering Drawing: The physical o...

Manual Engineering Drawing: The physical object is to be drawn (Do not take photographs of the object or use it as a template that you trace with) in class as an isometric dra

Pure maths, prove that 0 is an integer

prove that 0 is an integer

Battery components , Cell Connectors A cell connector connects the ne...

Cell Connectors A cell connector connects the nearby cell with two terminals of opposite polarity (sign). Post strap connect the plates to the terminal. Electrolyte

Effects of air resistance. , Traveling at a speed of 16.0 m/s, the driver o...

Traveling at a speed of 16.0 m/s, the driver of an automobile suddenly locks the wheels by slamming on the brakes. The coefficient of kinetic friction between the tires and the roa

Determine the thermal efficiency, A combined cycle plant is designed to dev...

A combined cycle plant is designed to develop 200MW power. The air is obtained by the compressor at 300K and 1 bar pressure. The maximum temperature of the gas turbine cycle is lim

What are the standards for product modeling, Standards for product modeling...

Standards for product modeling. The models include : (a)  A presentation model which defines the type of presentation of information. For instance how the product can be vi

Physics, when object is placed beyond the center of concave mirror

when object is placed beyond the center of concave mirror

Computer integrated manufacturing, the component of computer integrated man...

the component of computer integrated manufacturing with the diagram

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