Determine the best age at which to replace the machine, Operation Research

Assignment Help:

Question:

Machine A costs Rs. 9000. Annual operating costs are Rs. 200 for the first year, and then increase by Rs. 2000 every year. Suppose that the machine has no resale value when replaced and that future costs are not discounted.

(a) Determine the best age at which to replace the machine.

(b) If the optimum replacement policy is followed, what will be the average yearly cost of owning and operating the machine?

Machine B costs Rs. 10000. Annual operating costs are Rs.400 for the first year and then increase by Rs. 800 every year. You have now a machine of type A which is one year old. Should you replace it with B, and if so, when?


Related Discussions:- Determine the best age at which to replace the machine

Operations research 2, management wants to know how many supervisors should...

management wants to know how many supervisors should be hired, and what could be the optimum workload distribution to be applied, given a number of constraints

Research and development - information generation process, Research and Dev...

Research and Development: All intellectual activities consciously pursued and systematically completed generate useful information. Research (also Research and Development) is

One tailed and two tailed tests -hypothesis testing , Normal 0 ...

Normal 0 false false false EN-IN X-NONE X-NONE

Bibliography format - report writing presentation , Bibliography Format ...

Bibliography Format a. Introduction : Bibliographies  tell  readers  where they can  locate  information  about  a topic. It is a list of sources  of information  for a repo

Transpotation problem, a manufacture wants to ship 8 loads of his product a...

a manufacture wants to ship 8 loads of his product as shown below. The matrix gives the mileage from origin to the destination D. Origin Destination Available A B C X 50 30 220

Or, .A paper mill produces two grades of paper viz., X and Y. Because of ra...

.A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper

Simple method, solve the LPP using simple method, maximize z= 3x1+2x2 subje...

solve the LPP using simple method, maximize z= 3x1+2x2 subject to constraints

Precentile - measure of central tendency , Normal 0 false fal...

Normal 0 false false false EN-IN X-NONE X-NONE

Write Your Message!

Captcha
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