41. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the newequipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usagecan be described by this distribution:Number0 1 2 3Probability.10 .50 .25 .15If a part fails and a spare is not available, two days will be needed to obtain a replacement and install it. The cost for idleequipment is $500 per day. What quantity of spares should be ordered?Page 553a. Use the ratio method.b. Use the tabular method (see Table 12.3). TABLE 12.3 Expected cost for each possible outcome0If thestockinglevel isprob. = .200$011-unit excess.20(1)($800) = $1602-unit excess.20(2)($800) = $3203-unit excess.20(3)($800) - $480P23And the demand probabilities are12prob. = .40 prob. = .301 unit short.40(1)($4,200) - $1,680S = DSO1-unit excess .40(1)($800) = $3202-unit excess .40(2)($800) - $6402 units short.30(2)($4,200) - $2,5201 unit short.30(1)($4,200) = $1,260S = D$01-unit excess.30(1)($800) - $2403prob. = .103 units short.10(3)($4,200) - $1,2602 units short.10(2)($4,200) = $8401 unit short.10(1)($4,200) = $420S = D$0The expectedcost will be$5,460$2,260$1,060$1,360

Given data is Cost of spare part = $200 Salvage cost = $50 Idle equipment cost = $500 Number 0 1…

Answered: 41. A manager is going to purchase new…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 41P: At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 =...

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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.
28. An expensive piece of equipment is used in the masking operation for semi- conductor manufacture. A capacitor in the equipment fails randomly. The capacitor costs $7.50, but if it burns out while the machine is in use, the production process must be halted. Here the replacement cost is estimated to be $150. Based on past experience, the lifetime distribution of the capacitor is estimated to be Probability of Failure Number of Months of Service 1 .08 2 .12 3 .16 4 .26 5 .22 .16 How often should the capacitors be replaced in order to minimize the expected monthly cost of planned and unplanned replacement?
1. What is the most the real estate investor would be willing to pay for additional information? Use Minimum Expected Regret (Minimum EOL) 2. Use the alternative method to verify EVPI
7. A piece of equipment has a lifetime T (measured in years) that is a continuous ran- dom variable with cumulative distribution function F(t) = 1 – e/10 – (1/10) e¯/10 for all t> 0. a. What is the probability density function of T? b. What is the probability that a piece of equipment survives more than 20 years? c. What is the probability that a piece of equipment survives more than 10 years but fewer than 20 years? d. What is the probability that a piece of equipment survives more than 20 years given that it has survived for 10 years? 8. For the equipment mentioned in Problem 7, a. Derive the failure rate function r(1), and draw a graph of the function. b. Without using the failure rate function, determine the probability that a piece of equipment that has survived 20 years of operation fails in the 21st year. c. Does r(20) accurately estimate your answer to part (b)? Why or why not?
Explain or define each of these terms:c. Expected value
36. This risk stems from the unavailability of raw materials, IT, skilled labor, facilities, or other resources that threaten the organization's ability and capacity to continue operations. Group of answer choices None of the choices Product or service failure risk Availability risk Business interruption risk Commerce risk
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A manager is going to purchase new processing equipment and must decide on the number ofspare parts to order with the new equipment. The spares cost $200 each, and any unused spareswill have an expected salvage value of $50 each. The probability of usage can be described by thisdistribution:Number 0 1 2 3Probability .10 .50 .25 .15If a part fails and a spare is not available, two days will be needed to obtain a replacementand install it. The cost for idle equipment is $500 per day. What quantity of spares should beordered?a. Use the ratio method.b. Use the tabular method (see Table 13.3).
yz=06 Question 6 A newly purchased equipment item in your organization has a compressor that is known to experience failure (requiring complete replacement) after 6 years. Because of the problems in finding OEM parts, your organization is considering purchasing spare compressors. Your organization uses some numbers (all PER SINGLE COMPRESSOR) to make decisions: It costs $1200+YZ to purchase AND store a single spare compressor for one year. It costs $2000 for downtime costs and repair with that same stored compressor It costs $5000 to purchase a compressor (and downtime costs) and repair if you have to purchase it when it is immediately required. (the higher cost reflecting the convenience and not having to pay for storage) If the time frame of analysis is 4 years, use the Poisson distribution to advise on the lowest cost decision (ie. How many spare compressors will you recommend - zero, one, two...?)
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Nick owns a single-family home, which he rents out for $1,600 per month. According to the IRS, over how many years will Nick's property depreciate? • 27.5 years O 10 years • 100 years O 39 vears

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