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

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 $408 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:4 spare parts with frequency 0.1;5 spare parts with frequency 0.13,6 spare parts with frequency 0.16;7 spare parts with frequency 0.19; and 8 spare parts with frequency 0.42. For what range of shortage costs would stocking 6 spare parts constitute an optimal decision? O a. Between 60.94and 130.4 O b. Between 182.8and 391.3 . Between 146.2and 313 O d. Between 121.9and 260.9

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