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

Electro gas welding, ELECTRO GAS WELDING This process is an extension ...

ELECTRO GAS WELDING This process is an extension of MIG  I MAG welding, designed for single pass vertical welding of steel plates in the thickness range of 10 to 38 mm. The tw

Computer aided process planning, eXPLAIN THE GRAPHICAL IMPLEMENTATION OF TO...

eXPLAIN THE GRAPHICAL IMPLEMENTATION OF TOOL PATH GENERATION

Cylinder-basic components of engine , Cylinder : As the name implies it is...

Cylinder : As the name implies it is a cylindrical vessel or space in which the piston makes a reciprocating motion (forward and backward). The varying volume created in the cylin

Evaluate the fourth force, The resultant of four vertical forces is a coupl...

The resultant of four vertical forces is a couple moment 30 Nm acting counter clockwise. Three of the four forces are shown in fig given below. Evaluate the fourth force.

Transformer for flash butt welding, Transformer for flash butt welding ...

Transformer for flash butt welding The transformer required for flash butt welding is similar to that needed for other resistance welding processes. Here, the transformer is to

Business Management techniques, how do I Create appropriate costing systems...

how do I Create appropriate costing systems and techniques for specific engineering business functions.

Hooks law, State Hook's law: Sol.: It states that when material is l...

State Hook's law: Sol.: It states that when material is loaded within the elastic limit, the stress is proportional to strain produced by the stress. This means that the rat

Camshaft-basic components of engine , Camshaft : The camshaft controls th...

Camshaft : The camshaft controls the opening and closing of the two valves. The associated parts are push rods, rocker arms and valve springs. The camshaft is driven by a camchai

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