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

Stearing system, advantanges of a fixedbeam over ackermann

advantanges of a fixedbeam over ackermann

Calculate for spring amount of load carried, Calculate for spring amount of...

Calculate for spring amount of load carried: The table below gives specific of a compound spring consisting of two co-axial close-coiled springs. If the spring is subjected to

HEAT LOSS, HEAT LOSS IN CYLINDRICAL PIPE,PHYSICS

HEAT LOSS IN CYLINDRICAL PIPE,PHYSICS

Principle of energy conversion, Q.   Describe the principle of energy conve...

Q.   Describe the principle of energy conversion. Show that the reaction of coupling magnetic field on the electrical or mechanical system is essential for the electro - mechanical

Determine a least square geometric curve, Determine a least square geometri...

Determine a least square geometric curve y = ax b to the following data : x:  1   2  3   4   5 y: 0.5  2 4.5 8 12.5 Fit a straight line y = a + bx to the following data b

Shut-off valves on major zone, Q. Shut-off valves on major zone? Are shu...

Q. Shut-off valves on major zone? Are shut-off valves on major zone branches and on the bottom and top of riser? Are balancing valves on return branches? Are control valves on

What is the difference between mis and erp, MIS MIS:- Management Infor...

MIS MIS:- Management Information System Produces reports on user demand MIS is use for the Decision making reports It Collect data form of all department then produce

Explain about vertical vessels, Q. Explain about Vertical Vessels? Vert...

Q. Explain about Vertical Vessels? Vertical vessels shall normally be designed as self-supporting units, and shall resist overturn based upon wind or earthquake considerations.

Calculate the amount sand-aggregate, Calculate the amount of cement, sand,...

Calculate the amount of cement, sand, aggregate, and water needed to create a concrete mix with a 28-day compressive strength of 34 MPa for a 10 m x 10 m x 0.25 m structure given t

Method of joint, Method of joint: How you can find out force in the m...

Method of joint: How you can find out force in the member of truss by using method of joint? Sol.: In this, after determining the reactions at supports, the equilibrium

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