What is the weekly total maintenance cost of this program? Given the following data, find the expected breakdown cost. The cost per breakdown is $200.       Number of breakdowns per week 0 1 2 3 4 Weekly frequency 5 12 10 18 5   13) Great Southern Consultants Group's computer system has been down several times over the past few months, as shown below.   Number of breakdowns 0 1 2 3 4 Monthly frequency 9 2 4 4 1   Each time the system is down, the firm loses an average of $400 in time and service expenses. They are considering signing a contract for preventive maintenance. With preventive maintenance, the system would be down on average only 0.5 per month. The monthly cost of preventive maintenance would be $200 a month. Which is cheaper, breakdown or preventive maintenance?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their automated machines has caused several problems. Over the past 30 weeks, the machine has broken down as indicated below. Each time the machine breaks down, the firm loses an average of $3,000 in time and repair expenses. If preventive maintenance were implemented, it is estimated that an average of only one breakdown per week would occur. The cost of preventive maintenance is $1,000 per week.

 

Number of breakdowns per week

0

1

2

3

4

Frequency (Number of weeks that breakdowns occurred)

8

3

5

9

5

 

What is the weekly total maintenance cost of this program?

Given the following data, find the expected breakdown cost. The cost per breakdown is $200.

 

 

 

Number of breakdowns per week

0

1

2

3

4

Weekly frequency

5

12

10

18

5

 

13) Great Southern Consultants Group's computer system has been down several times over the past few months, as shown below.

 

Number of breakdowns

0

1

2

3

4

Monthly frequency

9

2

4

4

1

 

Each time the system is down, the firm loses an average of $400 in time and service expenses. They are considering signing a contract for preventive maintenance. With preventive maintenance, the system would be down on average only 0.5 per month. The monthly cost of preventive maintenance would be $200 a month. Which is cheaper, breakdown or preventive maintenance?

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