Answer:
19.24 weeks
Step-by-step explanation:
Given that;
Mean, m = 18
Standard deviation, s = 3
Break down cost = 2000
Preventive maintenance cost = 1400
The optimal preventive maintenance level is Given by :
Mean + service level * standard deviation
Service level = preventive maintenance cost / (breakdown cost + preventive maintenance cost)
Hence,
Service level = 1400/(1400+2000) = 1400 / 3400
Service level = 0.4117647
Optimal preventive maintenance level :
18 + (0.4117647 * 3)
18 + 1.2352941
= 19.235
= 19.24 weeks
