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

Evaluate the shaft diameter, The shaft, as given in Figure is driven by pul...

The shaft, as given in Figure is driven by pulley B from an electric motor. Another belt drive from pulley A is operating a compressor. The belt tensions for pulley A are 1500 N an

Clutch cable model-Clutch Complaint, Clutch cable model: Ensure the cables...

Clutch cable model: Ensure the cables fitted are of the respective model and not interchanged with other model. Also ensure that the cable is genuine.

Test the strength of binders, Strength tests : These tests are carried out ...

Strength tests : These tests are carried out to check the holding powers of various binders used in green moulding sand, dry moulding sand and core sand. These tests are performed

Fire dampers - air-conditioning guidelines, Clearly indicate fire dampers o...

Clearly indicate fire dampers on ducts penetrating fire rated partitions, equipment rooms, duct shafts, ceiling outlets, etc. Detail fire dampers on drawings if required. For

Plot velocity and pressure distributions reynolds numbers, The figure shows...

The figure shows a "square cavity flow". In this flow the cavity is filled with a fluid and the lid of the cavity moves with a constant velocity, while the other walls remain stati

Corrosion resistance of the nickel-based alloys, Q. Corrosion resistance of...

Q. Corrosion resistance of the nickel-based alloys? The corrosion resistance of the nickel-based alloys can also be significantly affected by other variables such as velocity a

Constructional details of two stroke engine, Constructiona l Details of Tw...

Constructiona l Details of Two Stroke Engine: The basic components are cylinder, piston, piston liners, connecting rod, piston rings, crank pin, crank shaft, counter weight e

Flanged pressure vessel nozzles, Q. Flanged pressure vessel nozzles? Th...

Q. Flanged pressure vessel nozzles? The Designer is responsible for ensuring that the facings, bolt circle, number of bolts, and size of bolts of vessel nozzles, match the mati

Calculations for the force to move a block, Calculations for the force to m...

Calculations for the force to move a block: T wo blocks A and B having weight 4KN and 2KN respectively are in equilibrium position as shown in the figure given below. Coeffi

Design of a filament winding machine, How can I achieve a back and forth mo...

How can I achieve a back and forth movement of carriage system. How can I reverse the motor to go back and forth.

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