Cost-effect Compromise
In many cases where the item is not stationary, a compromise is reached between cost and statistical probability. Some examples:
- an automobile carries a less-functional “donut” tire as replacement instead of a functionally equivalent tire.
- a member of a household buys extra light bulbs since it is probable that one of the lights in the house will eventually burn out and require replacement.
- a computer user will purchase a ream of computer paper instead of a sheet at a time.
- a race car team will bring with them to the race track another engine, “just in case.”
- a ship carries “spare parts” for its engine in case of breakdown at sea.
Read more about this topic: Spare Parts Management
Famous quotes containing the word compromise:
“We need not fear excessive influence. A more generous trust is permitted. Serve the great. Stick at no humiliation. Grudge no office thou canst render. Be the limb of their body, the breath of their mouth. Compromise thy egotism.”
—Ralph Waldo Emerson (1803–1882)