Jet Copier Case

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JET Copier Case Introduction This case involved a copy shop and the question of whether or not the store should purchase a backup copier to use when the primary copier breaks down and is being serviced. In order to make this determination, it is necessary to calculate the average length of time it takes to repair the copier after a breakdown, and the average interval between breakdown, which yields the average number of breakdowns in a given period, such as each year. Also necessary is knowledge of how much revenue is generated by the copier in a typical day, which would also represent the average amount of revenue lost for each day the store is without a copy machine (while the machine is being serviced). Taking all of these figures together, the annual lost revenue brought about by breakdowns of the copy machine can be estimated and compared to the cost of purchasing a backup copier, and from this a decision can be made: the company should only choose to purchase a backup copy machine if the cost of the machine is lower than the estimated revenue lost from breakdowns. Necessary Components Actually making a determination of each of these figures is more simply stated than accomplished. While broad and general estimated can be made using simply algebraic equations, more specific and realistic estimated can be achieved using the assistance of computers and specific software. In this case, Excel was used to create a spreadsheet and run simulations that provided cost

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