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

Illustrate thermal and hydrodynamic boundary layer, Define different regime...

Define different regimes of boiling and depict their ranges on a excess temperature curve us heat flux. Also distinguish between laminar film condensation and dropwise condensation

Different types of information units of cad, Different types of information...

Different types of information units of CAD There are different types of information units defined. They are : Class 0 The geometric primitives needed for describing 2- a

Stockholm conference, define environment and explain stockholm conference

define environment and explain stockholm conference

Determine the reaction - cantilever, Determine the reaction: The cant...

Determine the reaction: The cantilever is shown in the figure given below; determine the reaction when it is loaded.   In cantilever at fixed end ( A ) there is three reac

Pumps, three indications of centrifugal pump cavitating

three indications of centrifugal pump cavitating

Design a transition diagram, 1. Given the following grammar S à 0A0 | 1B1 |...

1. Given the following grammar S à 0A0 | 1B1 | BB; A à C; B à S | A; C à S | ε, (a) ( Derivation ) Given a left-most and right-most derivation of a string 01001110 (b) ( Parse tree

What are the basic different air-fuel mixture, Describe carburetion. What a...

Describe carburetion. What are the basic different air-fuel mixture on which an engine can be operated ? Write a short note on sterling cycle. In an engine working on inlet pres

Cam nomenclature, what is the meaning of translating roller follower and to...

what is the meaning of translating roller follower and total follower travel?

Estimate the machining time, Estimate the Machining Time A hollow work...

Estimate the Machining Time A hollow workpiece of 60 mm outside diameter and 150 mm length is held on a mandrel among centers and turned all over in 4 passes. If the approach

Fingerprint based on vehicle staring system, Hello sir, i would like to ask...

Hello sir, i would like to ask you if is possible to show me a sample of programing code which is used in arduino uno while programming fingerprint based on vehicle starting system

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