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

Capacitor discharge welding, Capacitor Discharge Welding This is used ...

Capacitor Discharge Welding This is used for welding of studs, welding of thermocouples, etc. on the base metal. A low voltage, high amperage electrical discharge from a capac

Angular shear stress.., how is angular shear stress distributed in between ...

how is angular shear stress distributed in between two stanchions

Characteristics of the secondary circuit, Characteristics of the secondary ...

Characteristics of the secondary circuit The dimensions of the secondary circuit in secondary loop determine to a large extent, the performance of these machines. The secondary

Determine the bending stress, The cantilevered beam made from the Z section...

The cantilevered beam made from the Z section is subjected to the two loadings as shown. (a)  Determine and show the orientation of the neutral axis on the cross section (angle

Break even analysis, Break even analysis: The costs from Shagun Palace...

Break even analysis: The costs from Shagun Palace, a continental restaurant, are shown below. Fixed costs are Rs. 50,000 per month. Break even analysis is applied as a

Fluid Mechanics final project, First we focus on the inner region fluid (0 ...

First we focus on the inner region fluid (0 (solid body rotation) around the z-axis. The steady incompressible velocity field is given by ur=0 utheta=rw uz= 0. The pressure at th

Select a flat belt drive, It is essential to select a flat belt drive for a...

It is essential to select a flat belt drive for a compressor running at 720 r.p.m which is driven by a 25kW, 1440 r.p.m. motor. Space is available for a distance of 3m. The belt is

V shaped tank, This lab sheet is designed to guide students through the exp...

This lab sheet is designed to guide students through the experimentation they will need to conduct in order to complete the continual assessment element of their NG3H235 studies.Th

Kleins construction method , How kleins construction method is different fr...

How kleins construction method is different from other type of graphical method

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