Homework Help is Here – Start Your Trial Now!
Business
Operations Management
c. Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)

c. Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question

0.855                   1((1-0.645)x(1-0.800)) = 0.0710

                             1-0.0710 = 0.929

0.929

0.999    0.855 x 0.929 x 0.999 = 0.7935

              Reliability of the system is 0.7935

0.645 0.855 0.800 0.999 c. Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)
Transcribed Image Text:0.645 0.855 0.800 0.999 c. Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Process selection
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS