Problem $12-41($Algo$)$

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 $$174$ each, and any unused spares will have an expected salvage value of $$44$each. The probability of usage can be described by this distribution:

$\backslash$table$[[$Number$,0,1,2,3],[$Probability$,10,\mathrm{.}50,\mathrm{.}25,\mathrm{.}15],[$Click here for the Excel Data File,,,,$]]$

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 $$590$ per day. What quantity of spares should be ordered?

a$.$ Use the ratio method.

Note: Round the SL answer to $2$ decimal places and the number of spares to the nearest whole number.

Service level is

$,$ so we need to order

Spares.

b$.$ Use the tabular method and determine the expected cost for the number of spares recommended.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimals.

Expected cost is

Please help with homework I need help with part A and B