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

Aigo) 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: Number 0 Probability .15 1 .40 2 .30 .15 Click here for the Excel Data File If a part foils and a spare is not available, 2 days will be needed to obtain a replacement and install it. The cost for de 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.) Service level is Spares so we need to order

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