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 $470 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 0.17;7 spare parts with frequency 0.22;8 spare parts with frequency 0.19;9 spare parts with frequency 0.21; and 10 spare parts with frequency 0.21. For what range of shortage costs would stocking 8 spare parts constitute an optimal decision ? a. Between 360.6 and 778.9 Ob. Between 450.7 and 973.6 O c. Between 150.2and 324.5 Od. Between 300.5and 649

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