Cloud Nova, a cloud computing company, manages 500 data serv…
Cloud Nova, a cloud computing company, manages 500 data servers that require routine maintenance to prevent unexpected failures. Each maintenance session takes 2 hours per server, while an unexpected failure results in 10 hours of downtime, costing $5,000 per hour. Without maintenance, each server has some probability of failure per week, which increases the longer it has been since the server has had a maintenance session. The company wants to use a simulation model to identify the optimal maintenance frequency (every 2, 4, or 6 weeks), balancing scheduled downtime with failure-related downtime. A) Identify the elements needed for the design of the simulation model: fixed inputs, random inputs and choice variable. B) Write 3 business questions for analysis that could be answered with a Monte Carlo simulation model in this business scenario. After completing the simulation modeling and trial runs, Cloud Nova’s management team was presented with the following visualization of the analytics output. Sim_1.jpg C) Summarize the simulation findings, discussing each option’s simulated downtime costs, as well as the risk associated with each option. End with a recommendation to the management team for which maintenance frequency should be adopted. Support your recommendation.