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Reliability analysis of equipment is extremely important for precise production planning, as the company would not have the right estimate of the production capacity and capability without understanding the reliability of the equipment. A related aspect, where the reliability analysis is relevant, is the spare parts management. Companies need to manage the material flows of spare parts that are needed for maintaining the equipment or replacing the broken parts. How would you think the analysis introduced in this module can guide companies in spare parts planning? [For example, we presented an example of computing the average replacement parts in the lecture. But what about the risk factors?]
Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? Should plants be able to produce for all markets or only specific contingency markets? How should markets be allocated ..
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