Question: 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

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 $476 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:6 spare parts with frequency 0.15;7 spare parts with frequency 0.11;8 spare parts with frequency 0.15;9 spare parts with frequency 0.1; and 10 spare parts with frequency 0.49. For what range of shortage costs would stocking 8 spare parts constitute an optimal decision ? a. Between 167.2and 330.8 b. Between 83.62and 165.4 c. Between 200.7and 396.9 d. Between 250.9and 496.2

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