Question: LVZ Vor factory utilizes a complex manufacturing process. Over the past 30 months, the assembly line has broken down as indicated below. Each time the
LVZ Vor factory utilizes a complex manufacturing process. Over the past 30 months, the assembly line has broken down as indicated below. Each time the assembly line breaks down, LVZ Vor loses an average of $4,000 in time and repair expenses. If preventive maintenance were implemented, it is estimated that an average of only one breakdown per month would occur. The cost of preventive maintenance is $750 per month.
Average loss per breakdown
Expected number of breakdowns with maintenance
Preventive cost per month
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