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 $484 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 0.21;11 spare parts with frequency 0.21;12 spare parts with frequency 0.21; and 13 spare parts with frequency 0.23. For what range of shortage costs would stocking 11 spare parts constitute an optimal decision ?

A manager intends to order a new machine and must

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