Mat 540 - Jet Copies Case Problem

JET Copies Case Problem

MAT 540

6/3/13

In the JET Copies Case Problem the probability function of time between repairs is the one of the issues and the other is the loss of revenue if they do not purchase the new copier. We were asked to generate a random value for computation of times between breakdowns. Using these random numbers and the linear formula SQRT(R1)*6, which represents the slope and probability function for breakdown intervals, we were able to compute the interval between breakdowns.

The amount of days in repair was one of the issues James, Ernie and Terry needed information. For each day the printer is down is equal to lost revenues and profits for their business. Using a probability look up chart based on assigned probabilities enabled us to randomly simulate the amount of time the printer would have been down or idle and losing print time. This is also another area that a broader random simulation may have helped us end at a more accurate and acceptable outcome. These values were cumulated and the total number of days in repair was calculated.

A third set of random numbers were generated to use in our formula y=((6*R3)+2)*100 to calculate a dollar amount of lost revenues per day. These values were summed to get the number of annual lost revenues so that a decision could be made about purchasing a new copier. By formulating the range of random numbers to asses if there is a great need to purchase another copier the formulation proved that JET copies will need a new copier.

This is due to the number of breakdowns that were shown from the calculations and the fact that James, Ernie, and Terri decided that if their loss of revenue to machine downtime during 1 year was $12,000 or more. From the calculations the total amount of loss of revenue exceeded $12,000. In my assessment of the case the amount of loss