Question: Problem # 5 ( from Section 1 . 3 Models in Business Analytics ) : A firm installs 1 , 5 0 0 air conditioners
Problem #from Section "Models in Business Analytics": A firm installs air conditioners th need to be checked every six months. The firm can hire a team from its logistics department at a fixe cost of This team will check each unit for The firm can also outsource this at a cost inclusive of all charges. Part a For the given number of units, compute the firm's total cost of checking for both options. Whic is a better decision? Part b Find the breakeven volume and characterize the range of volumes for which it is more economic to outsource.
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