Consumer Indifference Curve Relating Reliability to Purchase Price.
ARMY MATERIEL COMMAND TEXARKANA TEX INTERN TRAINING CENTER
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When operating under an indifference contracting plan for reliability, it is necessary to construct payment curves relating reliability to purchase price. This paper presents general methods that can be used to generate the indifference curves when using the concept of life cycle cost. In addition, a model utilizing a queueing approach to equipment failures is presented. This model is used to generate indifference curves relating purchase price to mean life. Examples are given for generating the indifference curves under two types of procurement plans for indifference contracting. Author
- Administration and Management
- Manufacturing and Industrial Engineering and Control of Production Systems