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Please solve National Thermal Power Corporation (NTPC) is planning to buy an alternator as part of an expansion plan and must now decide on the
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National Thermal Power Corporation (NTPC) is planning to buy an alternator as part of an expansion plan and must now decide on the number of spare parts to order. One of the critical spare parts is the "regulator, which can be purchased for Rs. 100 each. Carrying and disposal costs are estimated to be 145% of the purchase price over the alternator's life. A stock out would cost roughly Rs. 88000 due to downtime, ordering and special purchase factors. Historical records based on the performance of similar equipment operating under similar conditions in other NTPC plants shows that the demand for spare parts will tend to approximate a Poisson distribution with a mean of 3.2 parts for the useful life of the alternator. What is the optimal number of the regulator to be ordered and kept as spares? b. The maintenance manager wants to identify for what shortage cost, did he/she need not carry any spare parts of regular? Can you help him/her to identify the same? (5 + 4 = 9M) National Thermal Power Corporation (NTPC) is planning to buy an alternator as part of an expansion plan and must now decide on the number of spare parts to order. One of the critical spare parts is the "regulator, which can be purchased for Rs. 100 each. Carrying and disposal costs are estimated to be 145% of the purchase price over the alternator's life. A stock out would cost roughly Rs. 88000 due to downtime, ordering and special purchase factors. Historical records based on the performance of similar equipment operating under similar conditions in other NTPC plants shows that the demand for spare parts will tend to approximate a Poisson distribution with a mean of 3.2 parts for the useful life of the alternator. What is the optimal number of the regulator to be ordered and kept as spares? b. The maintenance manager wants to identify for what shortage cost, did he/she need not carry any spare parts of regular? Can you help him/her to identify the same? (5 + 4 = 9M)Step by Step Solution
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