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

Explain the procedure of rockwell hardness tests, Q. Explain the procedure ...

Q. Explain the procedure of Rockwell hardness tests? Rockwell hardness tests per ASTM of the deposited weld, and heat affected zone shall be required for procedure qualificatio

Insulatlon application information, The Contractor shall perform all work w...

The Contractor shall perform all work with the highest quality workmanship throughout to provide a neat, uniform appearance with no sharp edges exposed. Insulation shall not be

Inertia force analysis, what is the role of a correction couple and how doe...

what is the role of a correction couple and how does it come into picture in dynamically equivalent system?

Braking system in motorcycle, Braking System: A brake is a component of a ...

Braking System: A brake is a component of a motorcycle which is used to apply frictional resistance to a moving vehicle to stop or retard it by absorbing its kinetic energy. The f

Introduction to welding processes, Welding is a material joining process us...

Welding is a material joining process used in making welds and a weld is a localised coalescence of metals or non metals produced either by heating the materials to suitable temper

the centripetal force acting on the ball, A child is twirling a 0.0106 kg ...

A child is twirling a 0.0106 kg ball on a string in a horizontal circle whose radius is 0.096 m. The ball travels once around the circle in 0.540 s. (a) Determine the centripeta

#strength of materials, Distribution of shearing stresses on l--sections an...

Distribution of shearing stresses on l--sections and miscellaneous sections

Explain the standard for exchange and transfer, Standard for Exchange and T...

Standard for Exchange and Transfer (SET) The interface SET is a standard for the exchange of all data which is generated for CAD/CAM. It is a French development and was first p

Illustrate strip rolling, a) In strip rolling what is i) Forward slip ii) N...

a) In strip rolling what is i) Forward slip ii) Neutral point. Illustrate with diagram. b) State the conditions for rolling.

Energy method, A semi circular frame of flexural rigidity EI is built at A ...

A semi circular frame of flexural rigidity EI is built at A and caries a vertical load W at B. calculate the magnitude of the vertical and horizontal deflection at B and hence the

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