Question: For a mainframe computer, a preventive maintenance (PM) inspection and repair cycle costs a total of $2,000 on the average. If the computer breaks down,
For a mainframe computer, a preventive maintenance (PM) inspection and repair cycle costs a total of $2,000 on the average. If the computer breaks down, an average cost of $5,000 is incurred. The historical breakdown pattern for the computer is the following:
| Months between PM | Average number of breakdowns between PM |
| 1 | 0.2 |
| 2 | 0.6 |
| 3 | 1.8 |
| 4 | 3.6 |
| 5 | 7.0 |
Recommend how often preventive maintenance should be performed based on the total annual cost considering the breakdown cost and the PM cost.
Step by Step Solution
There are 3 Steps involved in it
To determine how often preventive maintenance PM should be performed for the mainframe computer we n... View full answer
Get step-by-step solutions from verified subject matter experts
