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 $497 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:9 spare parts with frequency 0.14;10 spare parts with frequency 0.13;11 spare parts with frequency 0.22;12 spare parts with frequency 0.14; and 13 spare parts with frequency 0.37. For what range of shortage costs would stocking 11 spare parts constitute an optimal decision

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