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The Eskom Power Company provides electricity to a large metropolitan area through a series of almost 2 0 0 hydroelectric generators. Management recognizes that even

The Eskom Power Company provides electricity to a large metropolitan area through a series of almost 200 hydroelectric generators. Management recognizes that even a well-maintained generator will have periodic failures or breakdowns. Energy demands over the past 3 years have been consistently high, and the company is concerned over downtime of generators. It currently employs four highly skilled repairpersons at R30 per hour. Each work every fourth 8-hour shift. In this way, there is a repairperson on duty 24 hours a day, 7 days a week. As expensive as the maintenance staff salaries are, breakdown expenses are even higher. For each hour that one of its generators is down, Eskom loses approximately R75. This amount is the charge for reserve power that Eskom must borrow from the neighbouring utility company. You have been assigned to conduct a management analysis of the breakdown problem. You determine that simulation is a workable tool because of the probabilistic nature of this problem. You decide the objective is to determine (a) the service maintenance cost, (b) the simulated machine breakdown cost, and (c) the total of these breakdown and maintenance costs (which gives the total cost of this system). Since the total downtime of the machines is needed to compute the breakdown cost, you must know when each machine breaks and when each machine returns to service.

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