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 $496 each and have no salvage value. The manager has compiled the frequency distribution for the probable usage of spare parts:3 spare parts with frequency 0.22;4 spare parts with frequency 0.08;5 spare parts with frequency 0.09;6 spare parts with frequency 0.17; and 7 spare parts with frequency 0.44. For what range of shortage costs would stocking 5 spare parts constitute an optimal decision ? O a. Between 212.6and 317.1 O b. Between 106.3and 158.6 O c. Between 318.9and 475.7 O d. Between 255.1 and 380.5

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