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 Battery failure data.
It is known that the average cost associated with a battery failure is $including spoilage of
goods whereas a preventive replacement can be undertaken at a total cost of $ Given that
the truck fleet operator wishes to consider implementing an agebased replacement
policy using the following model:
What is the optimal preventive replacement age? Consider values of
and
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