Asked by Durgesh Kumar on Jul 08, 2024
Verified
A manager is comparing the total maintenance (preventive plus breakdown) cost curves for two scenarios. The graphs have maintenance commitment on the x-axis and costs on the y-axis. Scenario A includes the direct breakdown maintenance costs, while Scenario B includes the "full" (direct and indirect) breakdown maintenance costs. Which of the following should the manager notice when going from Scenario A to Scenario B?
A) Total cost is decreased.
B) Optimal point is moved to the left.
C) Optimal point is moved to the right.
D) Preventative maintenance cost slope is increased.
E) Total cost does not move.
Maintenance Commitment
The obligation or dedication to keep equipment, systems, or infrastructure in working order through routine checks and repairs.
- Assess the consequences of maintenance protocols on running costs and system functionality.
Verified Answer
JV
Jamielyn ValenciaJul 12, 2024
Final Answer :
C
Explanation :
When going from Scenario A to Scenario B, the inclusion of indirect breakdown maintenance costs in Scenario B will increase the total maintenance cost curve, thus moving the optimal point to the right.
Learning Objectives
- Assess the consequences of maintenance protocols on running costs and system functionality.