The hydraulic pump used for tipping the box in a garbage truck becomes less efficient with usage. These results in less productivity in terms of value of materials moved per with usage. These results in less productivity in tents of value of materials moved per month. The avenge cost of replacing a pump is $1200. The trend in productivity is as follows:

Month 1 since new $10,000 worth of material is moved

Month 2 since new $9700 worth of material is moved

Month 3 since new $9400 worth of material is moved

Month 4 since new $8900 worth of material is moved

What is the optimal replacement time for the pump to minimize the total cost of replacement and lost production?

Transcribed Image Text:

Component Failure Frequency Data Thousands of kilometers to failure Expected frequency 0-10 10-20 20-30 250 250 250 30-40 250 Component Failure Frequency Data Thousands of kilometers to failure Expected frequency 0-10 10-20 20-30 250 250 250 30-40 250

Answer rating: 100% (QA)

Month a Material Moved for the worth Earnings In b Cumulative Earnings at the end of e... View the full answer