Relative cost-effectiveness, Macroeconomics

Assignment Help:

Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 14.6 we describe the simulation of 15 generator breakdowns and the repair times required when one repairperson is on duty per shift. The total simulated maintenance cost of the current system is $4,320.

Robbins would now like to examine the relative cost-effectiveness of adding one more worker per shift. The new repairperson would be paid $30 per hour, the same rate as the first is paid. The cost per breakdown hour is still $75. Robbins makes one vital assumption as she begins-that repair times with two workers will be exactly one-half the times required with only one repairperson on duty per shift.
Repair time
Required (hours) probability
0.5 0.28
1.0 0.52
1.5 0.20
1.00

(a) Simulate this proposed maintenance system change over a 15-generator breakdown period. Select the random numbers needed for time between breakdowns from the second-from-the bottom row of Table 14.4 (beginning with the digits 69). Select random numbers for generator repair times from the last row of the table (beginning with 37).

b) Should Three Hills add a second repairperson each shift?


Related Discussions:- Relative cost-effectiveness

Enumerate the categories of firms in the circular flow, Firms in the circul...

Firms in the circular flow We divide all firms into 3 categories: F R comprises all firms which acquire raw material (farm products, iron ore and so on), F H all those that p

External Economies of Scale, Why might external economies of scale be of in...

Why might external economies of scale be of interest to developing countries?

Fixed versus floating exchange rates, Fixed versus floating exchange rates:...

Fixed versus floating exchange rates: To begin with, we will briefly review the balance of payments (BOP) table of a nation that you studied in the course on international eco

Lag length criteria, Lag Length criteria VAR Lag Order S...

Lag Length criteria VAR Lag Order Selection Criteria         Endogenous variables: OIL EXCH R RPI LUNEMP GDP

Explain the short- and long-run consequences and rba, Question 1 What ...

Question 1 What would be the effect of an increase in Australia's net exports on the aggregate demand curve? Would an increase in net exports affect the RBA's monetary policy

Single nonprofit provider, For a single nonprofit provider, describe an out...

For a single nonprofit provider, describe an output-maximizing model to predict supplier behavior?

Find out fixed cost and average cost, Sara runs a small business assembling...

Sara runs a small business assembling personal computers. This table shows her total cost at different levels of output. Number of computers produced

Find out the marginal utility-demand curve, 1.  What is law of diminishing ...

1.  What is law of diminishing marginal utility? 2.  Find out the marginal utility for the following schedule of consuming pizza Pizza consumed 0

Why does yield on UK gov bond go up when stock markets down?, Doesn''t mone...

Doesn''t money move out of stock markets into bond? If more people buy bonds does this not push bond prices up and yields down? My question is about this quote from the Gardian tod

Give detail explanation about the inflation, Give detail explanation about ...

Give detail explanation about the Inflation Price index is computed at a particular point in time, inflation over a time period, mainly one year Inflation may just as

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