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

Z-test - hypothesis testing, Z-Test Prof. Fisher has  given a method  of...

Z-Test Prof. Fisher has  given a method  of testing the significance of the correlation coefficient in small  samples. According  to this method the  coefficient of correlation

Simplex solution, difference between simplex solution procedure for maximis...

difference between simplex solution procedure for maximisation and minimisation

Paired sample sign test - hypothesis testing , Paired sample  sign Test ...

Paired sample  sign Test Paired samples  sign test is applied  to a situation where two sample  are taken from  two population which  have continuous symmetrical distributi

Linear programming problem, Solve the following Linear Programming Problem ...

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Determining sample size for estimating poportions, Determining Sample Size ...

Determining Sample Size for Estimating poportions It is  necessary  to determining  the sample size for a  problem involving  proportions. This deals  with the percentage of f

Linear programming, mile-high microbrewery makes a light beer and a dark be...

mile-high microbrewery makes a light beer and a dark beer. mile-high has a limited supply of barley, limited bottling capacity, and a limited market for light beer. profits are $0.

Methods of scientific research, Methods is a tool or a techniques used t...

Methods is a tool or a techniques used to collect data. It is procedure for obtaining knowledge based on empirical observation and logical reasoning. Field Study Metho

Linear programing, A factory employs unskilled workers earning $135 per wee...

A factory employs unskilled workers earning $135 per week and skilled workers earning $270 per week. It is required to keep the weekly age bill below $24,300. The machine requires

#transportation and linear models.., #what is the similarity and difference...

#what is the similarity and differences between transportation and linear programing models?

Rephrasing the research problem, Rephrasing the Research Problem Final...

Rephrasing the Research Problem Finally as a researcher you should rephrase the research problem. Once you have followed all the four steps above, i.e., 1) You have clear

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