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 $467 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:8 spare parts with frequency 0.06;9 spare parts with frequency 0.18;10 spare parts with frequency 0.22;11 spare parts with frequency 0.15; and 12 spare parts with frequency 0.39. For what range of shortage costs would stocking 10 spare parts constitute an optimal decision ? a. Between 73.74and 198.9 b. Between 221.2and 596.7 C. Between 177 and 477.4 O d. Between 147.5and 397.8

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