Question: A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The

A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $181 each, and any unused spares will have an expected salvage value of $51 each. The probability of usage can be described by this distribution:
\table[[Number,0,1,2,3],[Probability,.15,.40,.30,.15]]
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If a part fails and a spare is not available, 2 days will be needed to obtain a replacement and install it. The cost for idle equipment is $660 per day. What quantity of spares should be ordered?
a. Use the ratio method. (Round the SL answer to 2 decimal places and the number of spares to the nearest whole number.)
so we need to order
Spares.
 A manager is going to purchase new processing equipment and must

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