Multiple Choice
A manager is comparing the total maintenance (preventive plus breakdown) cost curves for two scenarios.The graphs have maintenance commitment on the x-axis and costs on the y-axis.Scenario A includes the direct breakdown maintenance costs,while Scenario B includes the "full" (direct and indirect) breakdown maintenance costs.Which of the following should the manager notice when going from Scenario A to Scenario B?
A) Total cost is decreased.
B) Optimal point is moved to the left.
C) Optimal point is moved to the right.
D) Preventative maintenance cost slope is increased.
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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