A factory has a frequency of breakdown of their machine per month as shown in table below and the cost of breakdown remains the same but the cost of preventive maintenance becomes ksh 1250 per month, and given that if preventive maintenance is performed, probability of a machine breakdown is negligible. Determine whether the engineer should use preventive maintenance or would it be cheaper to repair the machine when it breakdown.                          Frequency of breakdown of machine per month Number of breakdown 0 1 2 3   Frequency 20 30 40 10

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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 A factory has a frequency of breakdown of their machine per month as shown in table below and the cost of breakdown remains the same but the cost of preventive maintenance becomes ksh 1250 per month, and given that if preventive maintenance is performed, probability of a machine breakdown is negligible. Determine whether the engineer should use preventive maintenance or would it be cheaper to repair the machine when it breakdown.

                         Frequency of breakdown of machine per month

Number of breakdown

0

1

2

3

 

Frequency

20

30

40

10

 

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