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Solved Problem on Simple probabilistic model (Individual replacement or Group replacement) -1


Example problem on Group replacement - 1

The failure rates of transistors in a computer are summarized in the following table. The cost of replacing an individual failed transistor is Rs.7. If all the transistors are replaced simultaneously it would cost Rs. 4 per transistor. Find the optimum replacement policy (i.e) individual replacement policy or group replacement policy.
End of week
1
2
3
4
5
6
7
Probability of failure
0.06
0.17
0.31
0.48
0.68
0.90
1.00

Given
Assume that there are 100 transistors in use.
Failure rate in first week, p1 = 0.06
Failure rate in second week, p2 = 0.17 – 0.06 = 0.11
Failure rate in third week, p3 = 0.31 – 0.17 = 0.14
Failure rate in fourth week, p4 = 0.48 – 0.31 = 0.17
Failure rate in fifth week, p5 = 0.68 – 0.48 = 0.20
Failure rate in sixth week, p6 = 0.90 – 0.68 = 0.22
Failure rate in seventh week, p7 = 1.00 – 0.90 = 0.10


Solution
Cost of individual replacement
Expected life of each transistor    = (1*p1) + (2*p2) + .... + ((7*p7)
                                                    = (1*0.06) + (2*0.11) + (3*0.14) + (4*0.17) + (5*0.20) + (6*0.22) + (7*0.10)
                                                            = 4.28 weeks
Avg. no of failures per week               = 100 / 4.28
                   = 23.36
                   = 23 (approx.)
Cost of individual replacement          = 23 * 7
                                                           = ₹. 207
The cost of group replacement:
No of transistors replaced at the end of each week listed in the following table.




Cost of group replacement of 100 transistors = 100*4 =  ₹. 400
End of Week
Total no of transistors replaced on each week
Total no of transistors replaced at the end of each week
Cost of replacement of transistors
(in ₹)
Total Cost
(in ₹)
Average cost per week
(in ₹)
A
B
C
D = C*7
E = 400+D
F = E/A
1
6
6 =
6
6*7 = 42
442
442
2
12
6+12 =
18
18*7= 126
526
263
3
16
6+12+16 =
34
34*7 = 238
638
212.6
4
21
6+12+16+21 =
55
55*7 = 385
785
196.25
5
26
6+12+16+21+26 =
81
81*7 = 567
967
193.4
6
32
6+12+16+21+26+32 =
113
113*7 = 791
1191
198.5

Therefore, the transistors replaced (group replacement) at the end of 5th week.
Result
Here the Group replacement cost per week is less than the individual replacement per week. Therefore group replacement is recommended.