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

Dead centre -engine terminology , Dead Centre The position of the wor...

Dead Centre The position of the working piston and the moving parts which are mechanically connected to it, at the moment when the direction of the piston motion is reserved

Illustrated about the term bending moment, Illustrated about the term bendi...

Illustrated about the term bending moment? Bending Moment The critical section for bending moment for masonry or concrete block walls is half-way between the centre line and

Compare otto cycle with diesel cycle, Compare otto cycle with Diesel cycle:...

Compare otto cycle with Diesel cycle: Sol.: These two cycles can be compared on the basis of either the same compression ratio or the same maximum pressure and temperature.

Terms related to stream engine, Terms related to stream engine: STEA ...

Terms related to stream engine: STEA M ENGINE MAIN PARTS: 1 .     Frame: It supports the various moving parts. 2 .     Cylinder: It forms a chamber in which the

Solution problems, hello I do not currently have my money. it turns out tha...

hello I do not currently have my money. it turns out that you will not extend your hand to me.

Show geographic constraints of the plant, Q. Show Geographic constraints of...

Q. Show Geographic constraints of the plant? The layout of process units will be influenced by the geographic constraints of the site. Spacing is required between plant facilit

Belt friction, Ask question # how to derive a expression for the centifugal...

Ask question # how to derive a expression for the centifugal tension in belt driver

Compute efficiency of dual cycle, (a) Compare 2 two-stroke cycle engines wi...

(a) Compare 2 two-stroke cycle engines with 4 stroke cycle engines. What are the function of flywheel and Cam Shaft? (b) Derive a mathematical expression for efficiency of dual

Show modular structures layout, Q. Show Modular Structures layout? Outs...

Q. Show Modular Structures layout? Outside dimensions and weight of truckable modules shall not exceed limits specified, Modular Structures in GS-904-0103. Minimum head clearan

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