Assume your company operates three trucks and experiences, Ask an Expert

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Assume your company operates three trucks and experiences 2.5 breakdowns per month and each breakdown costs the company $500 in repairs and delayed deliveries. You don't have any mechanics on staff and another company has offered to perform preventive maintenance at a contract cost of $450 per month. Even with the contract, your company will still experience 1.5 breakdowns per month. What is your recommendation to senior management?

keep the status quo and don't sigh the contract...it will cost less.

sign the contract with the maintenance provider, it will save your company approximately $600 per year.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92476342

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