Should three hills add a second repairperson each shift

Assignment Help Finance Basics
Reference no: EM13324119

Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 14.6 we describe the simulation of 15 generator breakdowns and the repair times required when one repairperson is on duty per shift. 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 one repairperson on duty per shift. Table 14.13 can then be restated as follows:

REPAIR TIME

REQUIRED (HOURS)         PROBABILITY

               0.5                           0.28

           1.0                           0.52

           1.5                           0.20

                                   1.00

(a) Simulate this proposed maintenance system change over a 15-generator breakdown period. Select the random numbers needed for time between breakdowns from the second-from-the bottom row of Table 14.4 (beginning with the digits 69). Select random numbers for generator repair times from the last row of the table (beginning with 37).

(b) Should Three Hills add a second repairperson each shift?

Reference no: EM13324119

Questions Cloud

Calculate the future value if the investment : Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.
Create an ios chart with the investment alternatives : The WACC is 7.75% with break points at $13 million and a new WACC of 8.12%. A final breakpoint occurs at $25 million boosting the WACC to 9.25%. Your banker has told you that beyond $25 million you will not be extended additional credit.
Explain the reacton at equilibrium : A mixture of SO2 and SO2O2 and SO3 at 1000k contains the gases at the following concentrations [SO2]=5.0e-3 mol/L [O2]=1.9e-3 mol/L and [SO3]=6.9e-3 mol/L is the reacton at equilibrium. If not which way will the reaction proceed to reach equilibri..
Calculate required area of air to air heat exchange to cool : Calculate the required area of an air to air heat exchange to cool 20,000 cfm from 1200 F to 400 F. Assume ambient air at 80 F will be heated to 800 F by the exchange.
Should three hills add a second repairperson each shift : Simulate this proposed maintenance system change over a 15-generator breakdown period. Select the random numbers needed for time between breakdowns from the second-from-the bottom row of Table 14.4 (beginning with the digits 69).
What is your displacement from your initial position : You walk from your house 0.25 miles West to Fred's house, What is your displacement from your initial position
Determine the rotational speed of the rollers : The distance from the center of the plate to the point of contact between the plate and the roller is 12 cm. The radius of the roller is 0.5 cm. Assuming no slip between the wheels and the plate, determine the rotational speed of the rollers.
Explain why must all the lines in the hydrogen spectrum : Why must all the lines in the hydrogen spectrum between 2500 A and 7000 A belong to the Balmer series
Determine the entrance losses after 36 hours of pumping : Observation wells are located 10 meter and 50 meters from the pumped well. After pumping continuously for 36 hours the drawdowns were 3.6 meters and 1.20 meters respectively.

Reviews

Write a Review

Finance Basics Questions & Answers

  Define valuation

Discuss and explain valuation, and describe why it is important for the financial manager to understand the valuation process?

  What equal annual ammount must garrett save at the end

What equal annual ammount must Garrett save at the end of each year (the first deposit will occur on his 31st and the last deposit will occur on his 60th birthday) to meet these retirement goals?

  What is the nal of the lease

Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of $200,000 at the end of the 4th year.

  Effects of time value of money concepts

What does time value of money mean? Why is this concept significant in accounting? Under what circumstances would we use time value of money calculations?

  Compute the required annual investment

A businesswoman wishes to invest a certain sum of money at the end of every year for five years. The investment will receive 6 percent compounded yearly.

  What is the weighted average cost of capital

If the corporate tax rate is 35%, what is the weighted average cost of capital.

  Calculate the portfolio weight of stock

Suppose you own a portfolio that consists of $8,000 in stock A, $4,600 in stock B, $13,000 in stock C, and $5,500 in stock D.

  What is the clinics average net float

On a typical day, Park Place Clinic writes $1,000 in checks. It generally takes four days for those checks to clear. Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinics average net float?

  Discussion on reserve currency

The US dollar is the world's reserve currency. China, Russia, and other smaller countries are increasingly voicing a desire for a new currency to replace the US dollar as the world reserve. Why?

  What is the target stock price in five years

The required return is 12 percent. What is the target stock price in five years? What is the stock price today?

  Show the whole analysis

Their net income is taxed at a 31% rate. Do a cash flow analysis, show the whole analysis, and recommend whether the new machine should be bought now or in 3 years when the old press must be replaced. Project WACC is 9.5%. Provide NPV, IRR, MIRR &..

  Determine the best payment option for car finance

You need a new car and the dealer has offered you a price of $20,000, Determine the best payment option for car finance.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd