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

Multiple objectives- sampling decisions, Multiple  Objective s The sam...

Multiple  Objective s The sample  may vary according  to the  objective of the research. There  may several objectives  of marketing  research so the  sample  size  may vary a

Linear programming, nass food produces to kinds of popular dark chocolate b...

nass food produces to kinds of popular dark chocolate bars.the banana and coffee. the banana bar costs 0.22 to make and sells of 0.35, where as the coffee bar costs 0.40 to make an

Title page - report writing presentation, Title  Page Tthe title page...

Title  Page Tthe title page  should  indicate  the topic  on which  the report has been  prepared the  person  or agency who has  prepared it the  person  a agency for whom it

Business Simulation Model, How much does cost for developing a simple model...

How much does cost for developing a simple model using Simuli 8 software and 2 pages write up (Explaining model). This is for my university assignment. For example last year assig

Mccolvin''s principles, McColvin's Principles: L.R McColvin advanced h...

McColvin's Principles: L.R McColvin advanced his Demand and Supply Theory of Book Selection in 1925. He states, "Books in themselves are nothing. They have no more meaning tha

Operations research, What are artificial variable why do you need them

What are artificial variable why do you need them

Transportation and assignment problem, What are the computer applications o...

What are the computer applications of transportation and assignment problem

Application Areas of Linear Programming, what is meant by Application Areas...

what is meant by Application Areas of Linear Programming?

DECISION MODELS, CRITICAL EXAMINATION OF THE APPLICATION OF DECISION THEORY...

CRITICAL EXAMINATION OF THE APPLICATION OF DECISION THEORY TECHNIQUES OR MODEL IN BUSINESS DECISION MAKING IN NIGERIA

Linear programming , A paper mill produces two grades of paper viz., X and ...

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 i

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