28. An expensive piece of equipment is used in the masking operation for semi- conductor manufacture. A capacitor in the equipment fails randomly. The capacitor costs $7.50, but if it burns out while the machine is in use, the production process must be halted. Here the replacement cost is estimated to be $150. Based on past experience, the lifetime distribution of the capacitor is estimated to be Probability of Failure Number of Months of Service 1 .08 2 .12 3 .16 4 .26 5 .22 .16 How often should the capacitors be replaced in order to minimize the expected monthly cost of planned and unplanned replacement?
28. An expensive piece of equipment is used in the masking operation for semi- conductor manufacture. A capacitor in the equipment fails randomly. The capacitor costs $7.50, but if it burns out while the machine is in use, the production process must be halted. Here the replacement cost is estimated to be $150. Based on past experience, the lifetime distribution of the capacitor is estimated to be Probability of Failure Number of Months of Service 1 .08 2 .12 3 .16 4 .26 5 .22 .16 How often should the capacitors be replaced in order to minimize the expected monthly cost of planned and unplanned replacement?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question

Transcribed Image Text:28. An expensive piece of equipment is used in the masking operation for semi-
conductor manufacture. A capacitor in the equipment fails randomly. The capacitor
costs $7.50, but if it burns out while the machine is in use, the production process
must be halted. Here the replacement cost is estimated to be $150. Based on past
experience, the lifetime distribution of the capacitor is estimated to be
Probability of
Failure
Number of Months
of Service
1
.08
2
.12
3
.16
4
.26
5
.22
.16
How often should the capacitors be replaced in order to minimize the expected
monthly cost of planned and unplanned replacement?
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