Reconsider the Heavy Duty Co. problem that was presented as Example 2 in Section 12.1. For each of the following three options in parts a through c, obtain an estimate of the expected cost per day by using RSPE to perform 1,000 trials of a computer simulation of the problem on a spreadsheet. Estimate the mean and generate a frequency chart.
a. The option of not replacing a motor until a breakdown occurs.
b. The option of scheduling the replacement of a motor after four days (but replacing it sooner if a breakdown occurs).
c. The option of scheduling the replacement of a motor after five days (but replacing it sooner if a breakdown occurs).
d. An analytical result of $2,000 per day is available for the expected cost per day if a motor is replaced every three days. Comparing this option and the above three, which one appears to minimize the expected cost per day?