Mathematics, 25.03.2021 20:10 Govt9140
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 $188 each, and any unused spares will have an expected salvage value of $58 each. The probability of usage can be described by this distribution: Number 0 1 2 3 Probability .15 .40 .25 .20 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 $730 per day. What quantity of spares should be ordered
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