Great southern consultants groups computer system has been, Ask an Expert

Management Studies

Great Southern Consultants Group's computer system has been down several times over the past few months, as shown below.

Number of breakdowns 0 1 2 3 4

Monthly frequency 9 2 4 4 1

Each time the system is down, the firm loses an average of $400 in time and service expenses. They are considering signing a contract for preventive maintenance. With preventive maintenance, the system would be down on average only 0.5 per month. The monthly cost of preventive maintenance would be $200 a month. Which is cheaper, breakdown or preventive maintenance?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91413879

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