21. An electronic assembly has 200 units of a particular chip. The failure of any of these causes the assembly to stop functioning. Accordingly, any failed component need to be immediately replaced.

Based on the past data, the mortality pattern of this chip is found to be as follows:

The cost of chip replacement is Rs 7 per failure. If all of the chips are replaced simultaneously, the cost works out to be Rs 3 per unit. Currently, the company is following the policy of replacing chips as and when they fail. It is contemplating to switch over to group replacement policy (involving group replacements at regular invervals and individual replacements as and when necessary). Find the optimal replacement interval and cost, and suggest whether it is advisable to change the policy

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Month 1 2 3 4 5 % failures by the month end : 10 30 50 80 100