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

Find speed of dynamo shaft, Find speed of dynamo shaft: Q: W ith the...

Find speed of dynamo shaft: Q: W ith the help of belt an engine running at 200rpm drives line shaft. The Diameter of the pulley on engine is 80cm and the diameter of the pul

Difference between, Difference between path function and point function

Difference between path function and point function

Aeronautical engineering, Aeronautical engineering is a branch of aerospace...

Aeronautical engineering is a branch of aerospace engineering, thus some people use the 2 terms interchangeably. It is also sometimes considered that aeronautical engineering cover

Molecular structure, Molecular Structure The polymers have three disti...

Molecular Structure The polymers have three distinct arrangements of molecular chain, hence resulting in three structures. In amorphous structure the molecular chain are ar

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

the component of computer integrated manufacturing with the diagram

Theory of machines, what is coriolis component of acceleration?

what is coriolis component of acceleration?

Determine the frictional resistance, Determine the frictional resistance: ...

Determine the frictional resistance:  (i) A train having weight 400 kN is running up an inclined path of 1 in 100 at a steady speed of 54 km/hour. If the frictional resistance

Cylinder head de-carburising and valve lapping, Cylinder Head De-carburisin...

Cylinder Head De-carburising and Valve Lapping: Cylinder head mounts on the top of the engine cylinder, the inner side of the cylinder head is always in direct contact of combusti

Determine the concurrent forces, Determine the concurrent forces: Four...

Determine the concurrent forces: Four coplanar concurrent forces act at point and keep it at rest. These are mention in Figure. Determine the forces P and Q. Solution

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