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A generator has a unit acquisition cost of $25,000 and a Weibull failure distribution with a shape parameter of 1.7 and a characteristic life of 12 years. The annual support cost allocated directly to the item is $2000. The average repair and replacement part cost is $1000. There are no separately identified initial fixed costs of operating. The generator also requires a special test and diagnostic unit costing $5000. The design life is 10 years and the salvage value at that time is $6000. The annual cost for operating the item is $500.
(a) What is the MTTF of the item?
(b) Calculate the 10-year lifecycle costs of a single generator assuming a 5% discount rate, continuous operation, and no inflation.
Assume shape parameter and state any other assumption you make which is not provided in the problem.
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