Have you figured out a transition matrix for both procedures?
Can anyone help me to begin solving this one?
Ball bearings in a machine have an increased probability of failure with increased service life. this machine has 2 bearings. bearings costs $30 each plus $50 per unit installation cost. a bearing failure results in an additional cost of $500. (when a bearing is replaced both bearings are replaced at the same time, and no bearing has ever run more than 5000 hours.)
Service life (1000 hours) No. of times failure occured
Management wished to examine 2 maintenance procedures:
1. replace as failures occur
2. replace individual bearings on an optimum replacement life basis
Which policy results in minimum cost? Hint: you will need to include one or more absorbing states