Question: Problem 5 : Maintenance Strategy Scenario: An engineering manager must choose a maintenance strategy for a critical machine. Preventive Maintenance: Cost: $ 3 0 ,

Problem 5: Maintenance Strategy
Scenario: An engineering manager must choose a maintenance strategy for a critical machine.
Preventive Maintenance: Cost: $30,000 annually; 80% chance of avoiding major failure costing $200,000.
Reactive Maintenance: No annual cost; 50% chance of machine failure costing $200,000.
Task: Create a decision tree and analyze the costs associated with each strategy. Which maintenance approach should the manager select?

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