Question: FIGURE 2 . 4 7 Battery failure data. It is known that the average cost associated with a battery failure is $ 9 0 0

FIGURE 2.47 Battery failure data.
It is known that the average cost associated with a battery failure is $900(including spoilage of
goods), whereas a preventive replacement can be undertaken at a total cost of $300. Given that
Cf>Cp, the truck fleet operator wishes to consider implementing an age-based replacement
policy using the following model:
C(tp)=CpR(tp)+Cf[1-R(tp)]tpR(tp)+M(tp)[1-R(tp)]
What is the optimal preventive replacement age? Consider values of tp=5000,10,000,15,000,
and 20,000km.
 FIGURE 2.47 Battery failure data. It is known that the average

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