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
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
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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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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