It costs a total of $2,000 to perform preventive maintenance (PM) on five identical production machines. This is the cost to perform preventive maintenance on all five of the machines.If one of the machines malfunctions between PM inspections, this breakdown cost averages $5,000 per breakdown.Following is the historical breakdown for the machines.

PM every n months	Average Number of Breakdowns between PM Inspections
2	0.1
3	0.5
4	1.6
5	3.2

a) Which PM policy provides the minimum cost strategy based on the information provided?

b) With everything else the same, what is the breakdown cost per machine that results in the same total cost for a 2-month PM strategy and a 3-month PM strategy?

Answer rating: 100% (QA)

Answer a To determine the minimum cost preventive maintenance PM strategy we need to calculate the t... View the full answer