EV charging units currently report high failure rates. As a result, the city is considering buying...
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EV charging units currently report high failure rates. As a result, the city is considering buying these units in bulk and providing them to the gas stations and parking lots at subsidized first-cost pricing. The units do not come with any warranty coverage, so the city is also planning to buy an additional high-quality service contract with warranty coverage for all units. However, only gas stations and parking lots that sign up beforehand will receive these subsidized costs and service contract. As a gas station owner, you could also buy an EV charging station of the same batch directly from the manufacturer. You can also buy an added warranty, but the warranty coverage is poor. Either way, the costs to cover warranty of these units is a function of time given by: WC = NCw |1- (MTTF /W)√(1-é Table 5 where, WC is the total added warranty cost, N is the number of units sold the batch, CW is a cost measure, W is the warranty coverage period, and MTTF is the mean time to failure obtained in testing of this batch The city's regulation does not state whether you need to buy from the city or buy directly, but only that you need to buy the charging station and a maintenance contract. Assume a shareholder-based capitalism model for your gas station company. What should you do? All relevant variables are shown in the Table 5 below. First Cost-EV Charger (subsidized) First Cost-EV Charger (direct) CW (subsidized) CW (direct) MTTF (subsidized and direct) W (subsidized) W (direct) Gas station 140000 150000 10000 6000 /MTTF 6000 hours 2500 hours *)] 500 hours O Buy subsidized from city as goal is to minimize company costs O Buy directly as goal is to minimize maintenance costs O Buy subsidized from city as goal is to minimize maintenance costs O Buy directly as goal is to minimize company costs Parking lot 90000 100000 8000 4500 6000 hours 2000 hours 400 hours EV charging units currently report high failure rates. As a result, the city is considering buying these units in bulk and providing them to the gas stations and parking lots at subsidized first-cost pricing. The units do not come with any warranty coverage, so the city is also planning to buy an additional high-quality service contract with warranty coverage for all units. However, only gas stations and parking lots that sign up beforehand will receive these subsidized costs and service contract. As a gas station owner, you could also buy an EV charging station of the same batch directly from the manufacturer. You can also buy an added warranty, but the warranty coverage is poor. Either way, the costs to cover warranty of these units is a function of time given by: WC = NCw |1- (MTTF /W)√(1-é Table 5 where, WC is the total added warranty cost, N is the number of units sold the batch, CW is a cost measure, W is the warranty coverage period, and MTTF is the mean time to failure obtained in testing of this batch The city's regulation does not state whether you need to buy from the city or buy directly, but only that you need to buy the charging station and a maintenance contract. Assume a shareholder-based capitalism model for your gas station company. What should you do? All relevant variables are shown in the Table 5 below. First Cost-EV Charger (subsidized) First Cost-EV Charger (direct) CW (subsidized) CW (direct) MTTF (subsidized and direct) W (subsidized) W (direct) Gas station 140000 150000 10000 6000 /MTTF 6000 hours 2500 hours *)] 500 hours O Buy subsidized from city as goal is to minimize company costs O Buy directly as goal is to minimize maintenance costs O Buy subsidized from city as goal is to minimize maintenance costs O Buy directly as goal is to minimize company costs Parking lot 90000 100000 8000 4500 6000 hours 2000 hours 400 hours
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