Question: 1: Managing Repair Operations Fuel processing units arrive at your facility for repair at a steady rate of 3 units at the beginning of each

1: Managing Repair Operations Fuel processing units arrive at your facility for repair at a steady rate of 3 units at the beginning of each week. At the start of each week, you decide how many units you will try to repair, up to a maximum of 8. The repair process has the following cost structure: Number of units attempted to repair 0 1 2 3 4 5 6 7 8 Cost $ 0 $ 100 $ 110 $ 120 $ 130 $ 190 $ 200 $ 210 $ 220 (These are total costs, not costs per unit.) Every time you attempt to repair a unit, there is an 85% chance, independent of all other units, that the repair operation succeeds. Units for which the repair operation fails, plus any which you did not attempt to repair, are carried over to the next week. The costs in the above table apply not matter how many of the attempted repairs are successful. Safety regulations allow you to carry over at most 15 units to the next week; if the number of units to be carried over exceeds this amount, any excess must be sent to an external repair vendor.

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