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A manager intends to order a new machine and must now decide on the number of spare parts to order along with the machine. The parts cost $462 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:7 spare parts with frequency 0.13;8 spare parts with frequency 0.14;9 spare parts with frequency 0.11;10 spare parts with frequency 0.07 ; and 11 spare parts with frequency 0.55 . For what range of shortage costs would stocking 9 spare parts constitute an optimal decision ? a. Between 170.9and 283.2 b. Between 256.3and 424.7 c. Between 205.1and 339.8 d. Between 85.44and 141.6 A shop that makes candles offers a scented candle, which has a monthly demand of 540 boxes. Candles can be produced at a rate of 48 boxes per day. The shop operates 20 days a month. Assume that demand is uniform throughout the month. Setup cost is $61 for a run, and holding cost is $6 per box on a monthly basis. Determine the the economic run size: a. 159 b. 240 c. 105 d. 70