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

Bond, What is bond and the types..

What is bond and the types..

Draw body centred cubic structure, Draw BCC structure and determine its num...

Draw BCC structure and determine its number of atoms per unit cell, co-ordination number and highest edgeradius relation. Draw FCC structure and determine its number of atoms pe

Strain, is strain in bending important parameter to consider?

is strain in bending important parameter to consider?

Define oxidation process, Q. Define Oxidation Process? Oxidation is def...

Q. Define Oxidation Process? Oxidation is defined as a loss of electrons, as when a metal goes from the metallic state to the corroded state. When a metal reacts with oxygen,

Calculate the survival function and expected value, Question Suppose T ...

Question Suppose T 1 and T 2 are independent and identically distributed Exponential variables with common hazard λ. What is the density of T = T 1 + T 2 ? What is the E(T-1

What is cushioning effect of a tyre?, (a) What is cushioning effect of a ty...

(a) What is cushioning effect of a tyre? (b) What are the desired properties of a wheel?

Explain double bolting, Q. Explain Double Bolting? Where low strength b...

Q. Explain Double Bolting? Where low strength bolts must be used, initial bolting with higher strength low temperature bolts may be necessary to minimize accumulative strain an

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