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

Newtons first law, Problem: Newton's First Law Newton's First Law of Mo...

Problem: Newton's First Law Newton's First Law of Motion says that, in the absence of external forces, an object at rest stays at rest and an object in motion continues at cons

What is injection moulding, Q. What is Injection moulding? An important...

Q. What is Injection moulding? An important industrial method of producing articles of thermoplastics is injection moulding. The moulding material is loaded into a hopper from

Kkleins constraction, What is the limition of kkleins constraction?

What is the limition of kkleins constraction?

Annealing temp, hiw can i fix the maximum temp of the aluminium

hiw can i fix the maximum temp of the aluminium

Relation ship, what is the relation ship between tolrancr grade and manufac...

what is the relation ship between tolrancr grade and manufacturing process ?

GOVERNORS, Explain Wilson HArtnell Governor

Explain Wilson HArtnell Governor

Steps for solving problem for finding maximum power, Step s for Solving Pr...

Step s for Solving Problem for Finding Maximum Power: 1. Use formula stress (σ) = force (Maximum Tension)/Area Where;  Area = b.t that is, T max = σ.b.t 2. Unit mass (

#titl, state and prove varigan theorm?

state and prove varigan theorm?

Determine maximum tension in the belt, The following data is provided for b...

The following data is provided for belt transmission dynamometer as shown in figure, NA = 400 r.p.m., DA = 750 mm, DB = DC = DD = 250 mm, L = 800mm, Power = 8KW. Determine :- Th

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