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 $421 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 0.21:9 spare parts with frequency 0.14:10 spare parts with frequency 0.06.11 spare parts with frequency 0.15; and 12 spare parts with frequency 0.44. For what range of shortage costs would stocking 10 spare parts constitute an optimal decision ? a. Between 272and 351.1 b. Between 340and 438.8 Between 113.3and 146.3 d. Between 226.7and 292.6

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