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6 years ago
Tiger Island Fabricators, which builds offshore oil platforms, has been experiencing problems with its profiling machine, a computer-driven device that cuts the ends of pipe so that it can be welded to another pipe, as shown in the data below.

Number of breakdowns   0   1   2   3   4   5
Breakdown frequency   2   2   2   6   7   1

Each time a machine breaks down, the company loses about $3,000. If the company implements preventive maintenance, it will be able to reduce the number of breakdowns to one per month. Preventive maintenance costs would be $500 a month. Is preventive maintenance a cost-effective option?
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Operations Management

Operations Management


Edition: 10th
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HplyEvrAftrHplyEvrAftr
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Apatix Author
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6 years ago
I hope they pay you for the awesome work you do around here.

Thank you
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