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

Determine the loading on the beam, Determine the loading on the beam: ...

Determine the loading on the beam: Shear force diagram for a loaded beam is illustrated in Figure. Determine the loading on the beam & therefore, draw the bending moment diagr

Find out the smallest force, Find out the smallest force: A block weig...

Find out the smallest force: A block weighing 800 N is raised up with the help of two 6o wedges B and C of negligible weights as illustrated in Figure. If the coefficient of s

Cement, wet process of portland cement

wet process of portland cement

Key words related to railways, Keywords: Degree of Curve      :      ...

Keywords: Degree of Curve      :            The angle subtended at the centre by a chord of 100 ft (30.5 m) length. Super-elevation (cant)        :            The raising

Estimate the rate of flow, At a sudden enlargement of a water main from 240...

At a sudden enlargement of a water main from 240 mm to 480 mm diameter, the hydraulic gradient rises by 10 mm. Estimate the rate of flow.

Derive heat transfer and work transfer expression, Derive heat transfer and...

Derive heat transfer and work transfer expression in an non-flow or closed isothermal and polytropic procedure?

Determine maximum internal diameter of hollow shaft, Determine maximum inte...

Determine maximum internal diameter of hollow shaft: A solid shaft of mild steel which is 200 mm in diameter is to be replaced by hollow shaft of alloy steel for which the al

Energy balance for a vapor stream, Write down the energy balance for a vapo...

Write down the energy balance for a vapor stream going through a throttling valve (a valve that just reduces the pressure).  State your assumptions. Suppose a nonvolatile materi

Compound springs how do they work?, Ask Compound springs how do they workqu...

Ask Compound springs how do they workquestion #Minimum 100 words accepted#

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