Design requirement and minimize costs

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Reference no: EM132641330

A hurricane evacuation shelter, operating the local municipality, wants to be sure (99.99%) they will have power for up to a 3 week period where the power is provided using generators. After a search of the market no single generator was found that could provide the required reliability, so instead multiple generators will be purchased and operated in an active parallel arrangement.

-An analyst for the municipality identified a generator from one supplier that has a reliability of 0.97 over a 3-week period and a cost of $325,000. How many generators of this types are required to meet the design requirement?

-Another supplier offers a generator with a reliability of 0.94 and a cost of $250,000. How many generators of this types are required to meet the design requirement?

-Which option is better?

-Assume the analyst is considering purchasing a mixture of these two generator types. How many of each type should be purchased in order to meet the design requirement and minimize costs?

Reference no: EM132641330

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