I.Title: A study whether to replace or to buy a new part of the computer.

II. Introduction Description This paper is intended for the benefit of the computer shop located at Bacoor, Cavite. The group went there to analyze the cost of expenses the shop incurs. The shop has an average size which has 30 units of computers..

Relevance Since the proponents are enrolled in Quantitative Techniques Management they went to a shop that needs replacement of units. The computers are semi-sensitive that once they hacked or virus gets in, the whole central processing unit or the motherboard crashes and needs to be replaced. They applied the replacement analysis to help the shop to lower their cost in replacing their computers.

Content As stated above, the proponents used the replacement analysis. 30 computers were the original number of units to be replaced whether individual or mass replacement.

III. Methodology As for the research method, the proponents have used quantitative research because it involves collection of quantitative data and formulation of mathematical model. For the data gathering, the researchers have personally collected all the information by interviewing the owner of the shop and soliciting significant figures.

IV. Organization Organizing plays a central and very important role in an organization because without it there would be chaos and goals might not be achieved. The researchers began by having a meeting on how they want the study to be done and what company to choose. Each of them eventually shared different ideas. After coming up with a final decision, they gathered all data that were needed. They applied not only division of work

but also work specialization, dividing all specific tasks to every individual expert in that field. The researchers agreed that each one of them has to perform specific tasks which must be coordinated with the tasks of others. In completing the work they made sure that the goals were clearly achieved.

The data collected are as follows: There were 30 computer units in the shop. Individual replacement would cost P500 for labour and P1000 for the hardware. The cost for mass replacement however is P500 for labour and P650 for hardware replacement. The researchers used replacement analysis in order to test which alternative is more cost efficient. Additional data given by the owner: Month after replacement 1 Percent replacement month requiring by the 5 10 17 20 27 2 3 4 5

Table 1

.05x1= .05 .05x2= .1 .07x3= .21 .03x4= .12 .07x5= .35 0.83 30 0.83 x1500

ans. =54216

No=30 N1=1.5 N2=1.6 N3=2.25 N4=1.19 N5=2.43

Cost End of the month

of

mass Cost of replacing Total Cost

Cost Month

per

replacement 30x1500

1 2 3 4 5

34500 34500 34500 34500 34500

2250 4605 7980 9735 13380

36750 39105 42480 44235 47880

36750 19552 14160 11058 9576

Table 2

Table 1 showed the months after replacement and the percentage requiring replacement after the month. With these data, the proponents then multiplied each month by the percentage and divided the total units by the value. The result was multiplied with the total cost of replacing each unit. Table 2 showed the mass replacement. The values of N were identified. The table made it easier for the researchers to determine the least cost for the mass replacement. Cost of mass replacement was multiplied by cost of replacing. The total cost was then divided by the number of months. With this, the one with the least value of the cost per month is considered. V. Discourse The disposition of this output is to inform and reveal the result to the owner of the computer shop in order to help him plan his spending on the replacement of computer units.

Since the owner of the shop also opened two more computer shops, it would be advisable to inform right away so that the owner would be able to evaluate his purchasing decisions. VI. Challenge The challenge was to determine the best alternative to be used in the replacement of hardware of the computer units of Baloys Computer shop. The evaluation was very crucial because large sum of money is involved. VII. Conclusion and Recommendation Basing on all the information gathered and the results of the computation, having a mass replacement of hardware is advisable, with cost of only P9576.00 after 5 months of usage than using individual replacement with a total cost of P54216.00 all 30 units. The proponents recommend that the owner of Baloys Computer Shop would evaluate this study and apply in the two additional stores he would open. Using this kind of analysis will help him improve his purchasing power and search for a more reliable supplier of computer parts as well.

FINAL PAPER in QUANTECH

BALAYAN CHRISTINE M. GARRIDO ERICA KRISTINE D. OCHOA, SHIELA R. SOLIDUM, ARIANNE O. VALENCIA, DANICA ROSE T. ENT41