1. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this distribution: If a part fails and a spare is not available, two days will be needed to obtain a replacement and Page 553 install it. The cost for idle equipment is $500 per day. What quantity of spares should be ordered? a. Use the ratio method. b. Use the tabular method (see TTable12.3).! And the demand probabilities are If the 0prob.=.201prob.=.402prob.=.303prob.=.10Theexpectedcostwillbe level is