A designer estimates that she can a increase the average, Operation Management

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A designer estimates that she can a increase the average

A designer estimates that she can (a) increase the average time between failures of a part by 5 percent at a cost of $550, or (b) reduce the average repair time by 10 percent at a cost of $100. Which option would be more cost-effective? Currently, the average time between failures is 100 hours and the average repair time is 4 hours.

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