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

Creep, Creep in belt drive

Creep in belt drive

Project to generates a parent population of size, This project involves a t...

This project involves a test of the basic idea behind the bootstrap method. Essentially you will write a program that: 1. Generates a parent population of size 100,000 whose dis

Plastic material and rigid plastic material, Plastic material and rigid pla...

Plastic material and rigid plastic material: For the plastic material, there is stress at which plastic deformation begins. A rigid plastic material is one in which the ela

Computer control system in flexible manufacturing system, Computers control...

Computers control system in flexible manufacturing system

Form tool design, I want to make a form tool for lathe for making a convex ...

I want to make a form tool for lathe for making a convex groove of 3 mm radius. tool material will be tungsten carbide. I want to know the dimensions of tool. What is the procedure

Show the geometric similarity, Q. Show the Geometric Similarity? When m...

Q. Show the Geometric Similarity? When model is required to provide an aid merely for visualisation, scaler reproduction of form is sufficient which is termed Geometric Similar

Beams, determine the shear force and bending moments of 4KN fprce

determine the shear force and bending moments of 4KN fprce

Illustrates the concept of bearing capacity of soil, Illustrates the concep...

Illustrates the concept of bearing capacity of soil? The concept of bearing capacity of soil is the very essence of design and analysis of shallow foundations. In order to inve

Methods of analysis of trusses, Methods of analysis of trusses: What ...

Methods of analysis of trusses: What are the methods of analysis of trusses? What is found when the analysis of a system is done? Sol.:  The forces in the members of

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