A Manager Is Comparing the Total Maintenance (Preventive Plus Breakdown)

question 109

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

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