OPERATIONS MANAGEMENT W/ CNCT+
12th Edition
ISBN: 9781259574931
Author: Stevenson
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 14.S, Problem 2P
The frequency of breakdown of a machine that issues lottery tickets is given in the following table. Repairs cost an average of $240. A service firm is willing to provide preventive maintenance under either of two options: #1 is $500 and covers all necessary repairs, and #2 is $350 and covers any repairs after the first one. Which option would have the lower expected cost: pay for all repairs, service option #1, or service option #2?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A 3 year-old a computer-controlled fabric cutting machine, which had a $25,000
purchasing price, has a current market (trade-in) value of $10,000 and expected
O&M costs of $4,000, increasing by 1,000 per year. The machine is required to have
an immediate repair that costs $2,000. The estimated market values are expected to
decline by 20% annually (going forward). The machine can be used for another 7
years at most. The new machine has a $40,000 purchasing price. The new machine's
O&M cost is estimated to be $4,000 for the first year, decreasing at an annual rate of
$100 thereafter. The firm's MARR is 10%. Assume a unique minimum AEC(10%) for
both machines (both the current and replacement machine).
Using the information above, determine the economic service life along with the
optimum annual equivalent cost of the defender (This is an infinite Horizon decision
problem).
a) n=4 and AEC=Between $8,400 and $8,800
b) n=4 and AEC=Between $8,000 and $8,400
c) n=5 and AEC=Between $8,400 and…
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…
For an additional fee, a customer purchasing a Whirlpool appliance, such as washing machine, can purchase a three year service contract. The contract provides free repair service and parts for the specified appliance using an authorized Whirlpool service provider. When a person with Whirlpool service contract needs to repair an appliance such as washing machine, he or she calls the whirlpool repairs and parts department to schedule an appointment. The department makes the appointment and gives the caller the date and approximate time of the appointment. This process is very lengthy. It may take two weeks to schedule a repair visit.In above case what changes could be made to make this process more efficient with the development of Information system. Discuss in detail various phases of System Development life cycle that are involved in this case.
Chapter 14 Solutions
OPERATIONS MANAGEMENT W/ CNCT+
Ch. 14.S - Prob. 1DRQCh. 14.S - Prob. 2DRQCh. 14.S - Prob. 3DRQCh. 14.S - Prob. 4DRQCh. 14.S - Prob. 5DRQCh. 14.S - Prob. 6DRQCh. 14.S - Prob. 7DRQCh. 14.S - Prob. 8DRQCh. 14.S - Prob. 9DRQCh. 14.S - Prob. 10DRQ
Ch. 14.S - The probability that equipment used in a hospital...Ch. 14.S - The frequency of breakdown of a machine that...Ch. 14.S - Prob. 3PCh. 14 - Prob. 1DRQCh. 14 - Prob. 2DRQCh. 14 - Prob. 3DRQCh. 14 - Prob. 4DRQCh. 14 - Prob. 5DRQCh. 14 - Prob. 6DRQCh. 14 - Prob. 7DRQCh. 14 - Contrast push and pull methods ofmovi.ttg goods...Ch. 14 - Prob. 9DRQCh. 14 - Prob. 10DRQCh. 14 - Prob. 1TSCh. 14 - Prob. 2TSCh. 14 - Prob. 3TSCh. 14 - Prob. 1CTECh. 14 - Prob. 2CTECh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Determine the number of cycles per day and the...Ch. 14 - Given this set of daily service operations, and...Ch. 14 - Determine the number of cycles per day and a...Ch. 14 - Compute the takt time for a system where the total...Ch. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - What might Stephanie determine as the best...
Knowledge Booster
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
- At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.arrow_forwardFour regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time to deliver these shipments is two business days. The four carriers compete with each other on the basis of price and service quality rating, as shown in the following table. The price reported in the table is the (nondiscounted) cost per hundredweight (cwt) of sending a 600-pound shipment from Lexington to Springfield at freight class 70. The service quality rating measures a carrier’s loss and damage record and goes from 0 (poor quality) to 100 (high quality). Carrier Price Service Quality Rating A $ 103.90 95 B $ 98.50 91 C $ 127.20 98 D $ 111.40 94 Which of these LTL carriers are on the efficient frontier?arrow_forwardWill and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?arrow_forward
- A plastic injection molding machine operates 334 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 Probability of a breakdown 0 0.32 1 0.27 2 0.22 3 0.13 4 0.06 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 $2,030 per day including replacement parts, cleaning, and software upgrades. The cost of a breakdown of $1,940 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…arrow_forwardA crew of mechanics at the Department of Transportation garage make minor repairs to snowplows during the winter. The snowplows break down at an average rate of 5 vehicles per day and breakdowns are distributed according to the Poisson distribution. The mechanic can service an average of 8 vehicles per day with a repair time distribution that approximates a negative exponential distribution. Assume an 8 hour day. What are the chances that 3 vehicles are in the service system? Group of answer choices 9% 38% 63% 19%arrow_forwardobs arrive at Loaf Machine Shop. Assume the arrival rate is five jobs per hour. Service times (in minutes per job) do not follow the exponential probability distribution. Two proposed designs for Loaf Machine Shop operation are shown. Design Mean Standard Deviation A 6.0 3.0 B 6.25 0.6 What are the standard deviations of the service times in hours? Which design provides the best operating characteristics? Why?arrow_forward
- Prybloxx primarily uses one courier company, AJAX Couriers, for all their deliveries. In some circumstances, where AJAX is too busy and does not have capacity to fulfil deliveries or they do not cover certain areas, only then will Prybloxx make use of a different courier company. Prybloxx has recently had a significant influx of customer complaints regarding goods that have not been delivered, delivered long after the agreed delivery time or damaged once they arrive at the customer. Prybloxx is aware of the effect that this could have on demand for their product, customer goodwill and are now investigating insourcing the delivery of their product to customers. Prybloxx has noted that they have two alternatives in insourcing this department – they can either purchase a local courier company that is considered a going concern or they can purchase all of the required assets and set up such a department themselves. Mr. Pranoto (production manager) has requested that you prepare a report…arrow_forwardStatement of the Problem and Solutions Rollin King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and have a good time while doing it, people would love to fly their airline. The result? No other airline in the industry's history has enjoyed the customer loyalty and extended profitability for which Southwest is now famous. The company now flies more than 3,400 times each day to over 64 destinations across the United States There's more to the story, however, than making promises and hoping to fulfill them. A large part of Southwest Airlines' success lies in its ability to plan long-term capacity to better match demand, as also improving the utilization of its fleet by turning around an aircraft at the gate faster than its competitors. Capacity at Southwest is measured in seat miles, and even a single minute reduction in aircraft turnaround time system wide means…arrow_forwardA system operational history provides the following data: Service Time = 780 hrs Available time = 8000 hrs %3D # of starts = 52 # of outages = 5 Forced Outage Time = 150 hrs Probability of system failure at start is zero. Find: a. Average service time b. Average available time c. Mean Time To Repair d. Mean Time To Failure e. Forced outage ratearrow_forward
- The annual operating costs of Machine A are $2,000. The machine will perform satisfactorily over the next five years and has an estimated market value (MV) of $3,000 at the end of its useful life. A salesperson for another company is offering a replacement, Machine B, for $14,000, with a MV of $1,400 after five years. Annual operating costs for Machine B will only be $1,500. It is believed that $10,000 could be obtained for the old machine A if it were sold now. If the before-tax MARR is 10% per year, determine whether the old machine A should be replaced by the new machine B.arrow_forwardPlease refer to the article below for the question; Robot- delivered Jajangmyeon NoodlesSoon in Seoul’s near future, citizens will be able to order jajangmyeon Chinese-Korean noodles, buy medicine and shop for magazines at home and have them delivered by a robot in half an hour.Kim Bong-jin, the founder of South Korea’s biggest food-delivery app, is betting that autonomous gadgets the size of a small cooler will help his Baedal Minjok delivery service keep a grip on a market filled with new entrants. The goal is to cut costs, reduce delivery-related accidents and cope with a labour shortage in one of the world’s fastestaging nations. Kim is confident that his Dilly robots will start deliveries within three years. Woowa Brothers Corp, the company behind Baedal Minjok, raised US$320mil fromHillhouse Capital, Sequoia Capital and GIC in the US to help develop a prototype that’s set to roll out soon. The goal is to tap into a global service robotics market projected to almost triple to…arrow_forwardYou have two design options for your new line of high-resolution monitors for Computer-Aided Design (CAD)workstations. The production run is for 110,000 units. Design option A has a .90 probability of yielding 65good monitors per 100 and a .10 probability of yielding 70good monitors per 100. This design will cost $1,000,000. Design option B has a .80 probability of yielding 65good units per 100 and a .20 probability of yielding 60good units per 100. This design will cost $1,350,000. Good or bad, each monitor will cost $75. Each good monitor will sell for $150. Bad monitors are destroyed and have no salvage value. We ignore any disposal costs in this problem. Demonstrate how decision trees can be used in order to choose the design option based on the above situation. Calculate the expected monetary value (EMV) of each option and determine which option you will propose.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Forecasting 2: Forecasting Types & Qualitative methods; Author: Adapala Academy & IES GS for Exams;https://www.youtube.com/watch?v=npWni9K6Z_g;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License