The life of a product is exponentially distributed and the average life is 28700 hrs. There are

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The life of a product is exponentially distributed and the average life is 28700 hrs. There are 50000 products are produced in total. The warranty period is supposed to be 5000 hrs. The maintenance cost during the warranty is 100 Yuan for each product.

a. Estimate the warranty cost of the company for this product.

b. if you are asked to reduce the cost to 200,000 Yuan, how do you increase the average life?

c. The cost of increasing average life is 7 Yuan per hour. Will you increase the average life or just keep the life level and perform maintenance?

Related Book For answer-question

Introduction to Management Science

ISBN: 978-0132751919

11th Edition

Authors: Bernard W. Taylor

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Posted Date: Feb 07, 2023 02:46 AM

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The life of a product is exponentially distributed and the average life is 28700 hrs. There are

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a The average life of a product is 28700 hours which means that the failure rate is 128700 per hour The warranty period is 5000 hours so the probabili... View the full answer

Introduction to Management Science

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