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Solved Problem on Simple probabilistic model (Individual replacement or Group replacement) -2


Example problem on Group replacement - 2

Electronic equipment contains 1,000 resistors. When any resistor fails, it is replaced. The cost of replacing an individual failed resistor is Rs.7. If all the transistors are replaced simultaneously it would cost Rs. 4 per transistor. The percent of surviving, S(i) at the end of month i is tabulated now. Find the optimum replacement policy (i.e) individual replacement policy or group replacement policy.
End of month i
0
1
2
3
4
5
6
Percent of surviving S(i)
100
90
85
65
35
15
0

Given
Total no of resistors = 1000
Failure rate in first month, p1 = (100 – 90) / 100 = 0.10
Failure rate in second month, p2 = (90 - 85) / 100 = 0.05
Failure rate in third month, p3 = (85 - 65) / 100 = 0.20
Failure rate in fourth month, p4 = (65 - 35) / 100 = 0.30
Failure rate in fifth month, p5 = (35 - 15) / 100 = 0.20
Failure rate in sixth month, p6 = (15 - 0) / 100 = 0.15


Solution
Cost of individual replacement
Expected life of each resistor        = (1*p1) + (2*p2) + .... + ((6*p6)
                                                         = (1*0.10) + (2*0.05) + (3*0.20) + (4*0.30) + (5*0.20) + (6*0.15)
                                                         = 3.9 weeks
Avg. no of failures per month = 1000 / 3.9
           = 256.41
           = 256 (approx.)
Cost of individual replacement = 256 * 7
                                                   = ₹. 1792
The cost of group replacement:
No of resistors replaced at the end of each week listed in the following table.




Cost of group replacement of 1000 resistors = 1000*4 =  ₹. 4000
End of month
Total no of resistors replaced on each month
Total no of resistors replaced at the end of each month
Cost of replacement of resistors
(in ₹)
Total Cost
(in ₹)
Average cost per month
A
B
C
D = C*7
E = 4000+D
F = E/A
1
100
100 =
100
700
4700
4700
2
60
100+60 =
160
1120
5120
2560
3
211
211+100+60 =
371
2597
6597
2199
4
344.1
344+211+100+60 =
715
5006
9006
2252

Therefore, the transistors replaced (group replacement) at the end of 3rd month.
Result
Here the Group replacement cost per month is higher than the individual replacement per month. Therefore individual replacement is recommended.