question archive The normal cost of the spare part is birr100 when the spare part is not available, the cost of rush purchase and the cost of down time of machine is birr1000, determine the optimum number of spare parts to be stocked for failure rate of spare part of a machine shown in the table
The normal cost of the spare part is birr100 when the spare part is not available, the cost of rush purchase and the cost of down time of machine is birr1000, determine the optimum number of spare parts to be stocked for failure rate of spare part of a machine shown in the table
Subject:ManagementPrice: Bought3
The normal cost of the spare part is birr100 when the spare part is not available, the cost of rush purchase and the cost of down time of machine is birr1000, determine the optimum number of spare parts to be stocked for failure rate of spare part of a machine shown in the table.
Number of failures
Probability (P)
0
0.4
1
0.2
2
0.25
3
0.15
