Question: In Problem S1-30, the decision analysis is for automobiles and light trucks. Alleghany Mountain Power and Light would like to reformulate the problem for its
In Problem S1-30, the decision analysis is for automobiles and light trucks. Alleghany Mountain Power and Light would like to reformulate the problem for its heavy construction equipment. Emergency maintenance is much more expensive for heavy equipment, costing $15,000. Required preventive maintenance costs $2000 and unnecessary maintenance costs $1200. The cost of an oil change is $200 and the cost of taking an oil sample and analyzing it is $50. All the probabilities remain the same. Determine the strategy the company should use for its heavy equipment.
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