Question: Check my work 6 A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with

Check my work 6 A manager is going to purchase

Check my work 6 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 $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this distribution: 14.28 points Number 0 1 2 Probability.10 .50 .25 3 . 15 Click here for the Excel Data File eBook If a part fails and a spare is not available, two days will be needed to obtain a replacement and install it. The cost for idle equipment is $500 per day. What quantity of spares should be ordered? Print a. Use the ratio method. (Round the SL answer to 2 decimal places and the number of spares to the nearest whole number.) References Service level is so we need to order 3 spares. b. Use the tabular method and determine the expected cost for the number of spares recommended. (Do not round intermedicate calculations. Round your final answer to 2 decimals.) Expected cost is

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