Operations Research Test on Chapter 6 Replacement Model

A factor used in replacement analysis with change in money value is called as

• Discount factor

• Present Worth factor

• Depreciation factor

• All of these

In group replacement policy, if any item fails before optimal time

• It is replaced individually

• It is not replaced individually

• It is replaced in a group

• None of above

Group replacement policy is not suitable for

• Large number of identical items

• Low cost items

• High costs items

• Items that fail suddenly

Group replacement policy is most suitable for

• Trucks

• Infant machines

• Street light bulbs

• New cars

In group replacement policy, if any item fails before optimal time

• It is replaced individually

• It is not replaced individually

• It is replaced in group

• None of the above

Group replacement policy is not suitable for

• Large number of identical items

• Low cost items

• High costs items

• Items that fail suddenly

Group replacement is not preferred for

• Large number of identical items

• Items that fail suddenly

• Low cost items

• Items that are repairable

Group replacement policy is most suitable for

• Blood groups

• Street lights

• Trucks

• All of above

Which of the following is used in replacement analysis of equipment?

• Purchase price

• Resale value

• A) and b) both

• None of above

What is concerned with the prediction of replacement costs and determination of the most economic replacement policy

• Search theory

• Theory of replacement

• Probabilistic programming

• None of the above