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Thread: [RESOLVED] Your car needs assistance

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  1. Jul 2nd, 2005, 03:14 AM #1
    Rassis
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    Resolved [RESOLVED] Your car needs assistance

    I have a problem and need your help.

    You take your car to preventive maintenance (PM) every 10.000 Km. Now and then a failure occurs and you have it fixed by undertaking some corrective maintenance (CM) action. Suppose that there is a 36% chance for this to happen in every period of 10.000 Km at 6.365 Km in average. If you pay an average of 100 € for each PM and 500 € for each CM, how much do you spend every 10.000 Km?

    I tried to solve the case analytically and also built a straight forward simulation model in Excel but, to my surprise, results differ significantly.

    May I have your suggestions?

    Thanks
    Last edited by Rassis; Jul 3rd, 2005 at 07:45 AM.
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