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

LInear Programming, - A paper mill produces two grades of paper viz., X an...

- 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 pape

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

Scope of operations research, Scope of the OR techniques can be derived ...

Scope of the OR techniques can be derived in followings various importance fields: 1. In Agriculture : With the explosion of population and consequent shortage of food O

North west corner rule, North West Corner Rule for Initial Solution: Now ...

North West Corner Rule for Initial Solution: Now by applying North West corner rule we can initial solution. According to this rule without regard to cost consideration the

Solved a.q, Solve the following Linear Programming Problem using Simple met...

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

Linear programing problems, basic requirements for solving linear programin...

basic requirements for solving linear programing using simplex method

Reports - classification of documents, Reports: Report literature is a...

Reports: Report literature is an important primary source of information, particularly  for a research library. This new  medium for communication of information came into bei

Mba, in a rectangular game ,pay of matrix of player A is as follows

in a rectangular game ,pay of matrix of player A is as follows

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