### Examine the relative cost effectiveness

Assignment Help Operation Management
##### Reference no: EM13809388

Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance cost. The total simulated maintenance cost of the current system is \$4,320.

Robbins would now like to examine the relative cost effectiveness of adding one more worker per shift. The new repairperson would be paid \$30 per hour, the same rate as the first is paid. The cost per breakdown hour is still \$75. Robbins makes one vital assumption as she begins-that repair times with two workers will be exactly one-half the times required with only on repairperson on duty per shift.

Repair Time Frequency

0.5 28

1 52

1.5 20

a) Simulate this proposed maintenance system change over 15 generator breakdown period. Select the random numbers needed for the time between breakdowns from the second-from the bottom row of 15.5 (attached)chart 1 (begining with digits 69). Select random numbers for generator repair times from the last row of the table (begining with 37)

b) Should Three Hills add a second repairman?
a. In order to determine the number of program sales in a given year, we use the numbers in the last column of the random number table and compare this number to the cumulative probability distribution (CPD) of program sales, as given by the following table:

b. The following table shows the profits for each year assuming the university decides to print 2500 programs for each game.

c. The following table shows the profits for each year assuming the university decides to print 2600 programs for each game.

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