(Solved) : Costs Total 2 000 Perform Preventive Maintenance Pm Five Identical Production Machines Cos Q38381146 . . .

It costs a total of $2,000 to perform preventive maintenance(PM) on five identical production machines. This is the cost toperform preventive maintenance on all five of the machines. If oneof the machines malfunctions between PM inspections, this breakdowncost averages $5,000. Following is the historical breakdown for themachines.

PM every n months

Average Number of Breakdowns between PMInspections

2

0.1

3

0.5

4

1.6

5

3.2

a) Which PM policy provides the minimum cost strategy based onthe information provided?

b) With everything else the same, what is the average breakdowncost that results in the same total cost for a 2-month PM strategyand a 3-month PM strategy?

 

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