A plastic injection molding machine operates 320 days a year. It is the bottleneck workstation in a process that produces plastic housed wall clocks. Industrial engineers collected data on the probability of machine breakdowns, the costs of preventive maintenance, and the cost of a breakdown. Number of Molding Machine Breakdowns per Day 0 1 2 3 4 Probability of a breakdown 0.33 0.28 0.18 0.11 0.10 The cost of preventive maintenance is high due to performing it between 1 and 4 a.m. each day by two machine experts. The preventive maintenance cost is $2,070 per day including replacement parts, cleaning, and software upgrades. The cost of a breakdown of $1,890 is also high because the downstream workstations can only work until all work-in-progress inventory is completed; then the entire process must stop. What are the economics of the situation? Do not round intermediate calculations. Round your answers to the nearest cent. The expected cost of a breakdown per day is $ ___ . The manufacturing firm saves $___ per year by performing preventive maintenance daily on the injection molding machine.
A plastic injection molding machine operates 320 days a year. It is the bottleneck workstation in a process that produces plastic housed wall clocks. Industrial engineers collected data on the
| Number of Molding | |||||
| Machine Breakdowns per Day | 0 | 1 | 2 | 3 | 4 |
| Probability of a breakdown | 0.33 | 0.28 | 0.18 | 0.11 | 0.10 |
The cost of preventive maintenance is high due to performing it between 1 and 4 a.m. each day by two machine experts. The preventive maintenance cost is $2,070 per day including replacement parts, cleaning, and software upgrades. The cost of a breakdown of $1,890 is also high because the downstream workstations can only work until all work-in-progress inventory is completed; then the entire process must stop. What are the economics of the situation? Do not round intermediate calculations. Round your answers to the nearest cent.
The expected cost of a breakdown per day is $ ___ .
The manufacturing firm saves $___ per year by performing preventive maintenance daily on the injection molding machine.
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